Counting Income from a Job that Hasn’t Started Yet
Sometimes, potential homebuyers need to count income from a job that hasn’t started yet, or a raise that hasn’t gone into effect yet, in order to qualify for a mortgage. Can this be done?
Here’s what you need to know about qualifying for a mortgage based on income you aren’t receiving yet.
We can count income from a job that hasn’t started yet if you have an offer letter from your future employer, and the letter indicates the following:
- It must be non-contingent, meaning there is nothing in the offer letter that you might not be able to satisfy (licensing, certifications, education, etc.)
- The letter needs to be signed by the employer, and you need to accept and sign the offer
- The terms of the offer must be clearly identified, including the position, the type and rate of pay, and the start date
In addition, the following restrictions apply:
- The employer cannot be a family member or other party to the real estate transaction
- We can only count your base, fixed-rate income (no commissions, bonuses, overtime, etc.)
- The property you are buying must be a primary residence (a house you are going to live in), and it has to be a one-unit property
- The employment start date must be within 90 days of the note date (the date you close on the loan)
- You must have enough money left over after the closing to cover 6 months of your total housing payment. These reserves do not have to be in a checking or savings account – they can be in a retirement or investment account as well.