As an applicant for the Florida FHA mortgage loan, it is mandatory for you to furnish information and records pertaining to your past and current employment. You would be asked to provide details such as the name of your company, the duration of your employment with them as well as other relevant information such as your gross income. Generally a two year employment history will be required. In case you are wondering why, it is because using these details; your lender would be able to determine whether you were a dependable employee in your past or current job. This is part of the screening process to evaluate whether you would prove to be a good candidate for the FHA loan.
Most lenders do not accept employment information at face value due to the risk of fraud these days. Instead the FHA makes it mandatory for the loan officer to authenticate details pertaining to the borrower’s source of income and other relevant information. This way the lender ensures that all the information provided by the borrower is accurate and valid. Prior verification of the borrower’s data also ensures that the lender treats each application separately and does not clump them together into one general qualifying criterion as the rest.
The reason behind this elaborate screening process is due to the fact that there are certain borrowers who might want to apply for a FHA loan while they are in between jobs. The verification is completely justified as it is impossible for the lender to view the borrower’s projected salary when he hasn’t started working at his new job. Had there been one standardized criteria or eligibility circumstances that were required to be met by the borrower in order to qualify for the loan, he would find himself down on his luck.
So is it possible for the borrower to furnish details of his projected salary as eligible income for the FHA mortgage loan even before starting his job? Although the FHA has categorically mentioned on their website that projected salaries cannot be accepted in order to qualify for the loan, they do make exceptions in certain circumstances. For instance, annual bonuses, the cost of the borrowers living style pay hikes as well as the money earned from raises can be disclosed as effective or verifiable income. However, this is allowed only if the borrower’s employer verifies the income in writing and if the borrower is on the verge of being paid within 60 days before the closing of the loan along with evidence that the borrower has adequate cash reserves to make the monthly mortgage payment from the closing date of the loan till the time the borrower commences employment in his new job.
FHA Mortgage Source is Florida’s leading FHA loan resource. Please call us at ph: 800-743-7556 or submit the quick Info Request Form on the right side of this page. Mobile users will find the Info Request Form here. Serving Daytona Beach FL, Jacksonville FL, Orlando FL, Tampa FL
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