I received and email today from a local lender. Kevin Dunn with First Portfolio Lending was excited to tell me about a new product that he was able to offer to qualified home buyers who are starting a new job ( perhaps with a higher income ) and want to buy a home. The problem has been that in the past one could not use projected income from a "New" job to qualify for a mortgage. It has made it very difficult in the past especially in cases of professionals and government workers who have relocated for a new position and arrive in the market early to find a home and get settled before the new employment actually begins.
First Portfolio Lending seems to have buyers who are in this position covered! Here is what you need to know about this program.
Income from the NEW JOB will be allowed on purchase transactions of 1-unit primary residences only. Future income must be documented with a formal offer or contract letter from the new employer stating all pertinent information ( start date, salary, etc. ) This offer must be non-contingent. It must be signed by the employer and accepted by the borrower. The borrower must start the new job within 60 days of closing on the new home. The borrower must also have cash reserves equal to at least 6 months worth of payments to cover the principal, interest, taxes and insurance on the new home and mortgage. Also,
a verbal confirmation from the new employer that the contract terms have not changed will be needed 10-days prior to closing.
So, ultimately there are still some extra hoops that a home buyer in this position would have to jump through. But this and similar programs are offering a solution to what used to be a big problem for buyers who relocate for new employment opportunities.
Please Note: The information contained in this blog post should not be construed as an endorsement or recommendation for the services or individuals discussed here-in. Chris Handy Real Estate LLC and Chris Handy encourages home buyers to shop around and compare several lenders and services to find the best fit for their needs.