As a standard rule of thumb, lenders like to see at least two years of steady employment in home loan applicants. But if you were recently discharged from the military or changed your job, you may not be able to meet this requirement. If this is the case, you may be wondering how to apply for a VA home loan with a shorter employment history. Here’s what you need to know.
Applying for a VA Loan with Less than Two Years of Employment
Employment gaps happen for many reasons. Sometimes, it’s because an applicant decided to go back to school and take time off from work. Or maybe they had a baby and decided to be a stay-at-home parent for a while. Many situations can arise which would cause a VA home loan applicant to have less than two years of steady employment.
The good news is, having a shorter employment history doesn’t automatically disqualify you from getting a VA loan. VA lenders understand that these things happen and are often willing to make exceptions. These unique situations are assessed on a case-by-case basis. In some cases, a lender may be willing to move forward so long as they feel that the borrower will be able to repay the loan. They may ask for additional documentation or a statement from your employer as reassurance.
Regardless of your reasons for a short employment history, it’s important to be upfront with your lender about your situation. They may be able to provide coaching and give advice about how to apply for a VA home loan with less than two years of consistent employment.
Factors that Lenders Consider for a Short Employment History
When evaluating an applicant with a short employment history (less than 2 years on the job), a lender may look at other factors such as:
- Length of time in your current position and whether it’s closely related to your last job.
- How your training, qualifications, and other experiences relate to your current job.
- Your role in the military and overall employment history.
- Statement from your employer that you’re likely to continue being employed at your current job.
If you have questions about how to apply for a VA home loan due to your employment situation, don’t be afraid to ask your lender for help. Remember, your lender is there to support you, not work against you. They’re counting on customers like you for business. Therefore, they want your homebuying journey to be a success and will be more than happy to lend a helping hand.
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