Despite the tightening of credit, it’s still possible to qualify for a mortgage even if you haven’t earned much (or even anything) for a year. Lenders, explains Dan Green, are accepting offer letters — with certain caveats — as proof of income.
The caveats? Cut and pasted from Green’s site:
- Provide a non-contingent offer letter, signed by the applicant and the new employer
- Provide evidence that the job start date is within 90 days of the mortgage closing date
- Provide evidence that the subject home will be a primary residence
- Provide evidence that the subject home is a detached single-family residence, townhome or condominium
- [Have] sufficient reserves to pay mortgage payments plus real estate taxes and homeowners insurance during the gap between closing and the job start date, plus an additional 3 months of reserves