December 2, 2021

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How Long Do You Have To Be At A Job To Get An FHA Loan?

How long do you have to be at a job to get an FHA loan?

How long do you have to be at one particular job to get an FHA loan? The employment issue is an important one, but some borrowers misunderstand the rules, thinking them to be more strict than they actually are.

What is the reality of the FHA loan employment rules?

FHA Loan Rules For Minimum Employment Standards

The rules governing FHA loan employment standards are found in the FHA loan handbook, HUD 4000.1, which includes the following requirement on how the lender must verify the borrower’s employment history:

“Mortgagees must not accept or use documents relating to the employment, income, assets, or credit of Borrowers that have been handled by, or transmitted from or through the equipment of unknown parties, or Interested Parties.”

Furthermore, the lender “may not accept or use any third-party verifications that have been handled by, or transmitted from or through any Interested Party, or the Borrower.” Sourcing is a very important issue for FHA loan transactions.

This is why the lender will require you to provide your work history complete with contact information; you can provide the means to contact the employer, but the borrower is not permitted to furnish the information itself except as a basic reference to be verified by the lender with the employer, via tax records, etc.

FHA Loan Rules For Documenting Employment History

HUD 4000.1 instructs the lender, “The Mortgagee must document the Borrower’s income and employment history, verify the accuracy of the amounts of income being reported, and determine if the income can be considered as Effective Income”. As you can see, the history of employment is given serious consideration.

FHA Loan Rules For Employment Length

The lender is required to document the borrower’s most recent two years of work history. FHA loan rules do not automatically rule out a borrower who has had a change of employer during that time, but in some cases, some additional documentation may be required. From HUD 4000.1:

“If the Borrower has changed employers more than three times in the previous 12- month period, or has changed lines of work, the Mortgagee must take additional steps to verify and document the stability of the Borrower’s Employment Income.”

Your lender may require tax records and other documentation to verify some or all of the above. Lender standards may apply above and beyond what is written here-you should speak to a loan officer to learn the standards at your chosen financial institution.

Learn About the Path to Homeownership
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Step 9: What to Expect at Closing

Bruce Reichstein - FHA News Author

By Bruce Reichstein

November 12, 2021

Bruce Reichstein has spent over three decades as an experienced FHA and VA home loan mortgage banker and underwriter where he was responsible for funding “Billions” in government backed mortgage loans. He is the Managing Editor for where he educates homeowners on the specific guidelines for obtaining FHA guaranteed home loans.

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About was launched in 2010 by seasoned mortgage professionals wanting to educate homebuyers about the guidelines for FHA insured mortgage loans. Popular FHA topics include credit requirements, FHA loan limits, mortgage insurance premiums, closing costs and many more. The authors have written thousands of blogs specific to FHA mortgages and the site has substantially increased readership over the years and has become known for its “FHA News and Views”.

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