Many people in California have gone through long periods of unemployment in the last few years. This post is to let you know how long you will need to back to being employed full time and other items to qualify for a FHA loan in California.
Generally, after a long period of unemployment (6 mos to 1 year), you will need to back at a full time job for six mos to one year to meet FHA loan guidelines. If you have been unemployed for two years or more, you may also have to show that you had steady employment before your extended period of unemployment, and it may help if you are back employed in your long term career. If you getting into a new line of work, you may need two years back on the job to meet FHA loan guidelines.
In addition to the above requirements, if you are back on the job for 6-12 mos after a long period of unemployment, you will not be able to count bonus, overtime or commission income, as FHA loan guidelines require a two year history to count these forms of income. So you would only be able to count you base salary if back on the job after a long period of unemployment.
So I hope that helps you understand you chances qualifying for a FHA loan in California after a long period of unemployment. If you have any other questions or would like to discuss FHA loan approval, please don’t hesitate to email me at homeloan8@gmail.com or call 858-922-7899.
Below are some very up-to-date features and advantages of FHA loans in California:
- FHA loan limits in California go all the way up to $729,750 with only 3.5% down in many counties and cities such as San Francisco, San Jose, Alameda County, Los Angeles, Orange County and more. And many other areas such as San Diego are close to these FHA loan limits.
- FHA loan down payment is only 3.5% and that can all be a gift from a relative
- FHA loan guidelines allow for 55.9% debt-to-income (DTI) ratios where conventional loans with <20% down require 41-45% DTI. This allows you to qualify for a higher priced home with FHA.
- FHA loan rates are at their lowest since the 1950′s.
Warmest Regards,
Rob Chomentowski
Sr. Loan Officer (FHA, VA, USDA, Homepath and conventional loan specialist)
858-922-7899
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