Yes. A new job doesn't stop you from buying a house. Lenders look at your work history and whether your current pay is stable, and a move to a new employer in the same line of work, especially one that pays more, usually helps an application.
What each program looks for
| Program | Work history rule |
|---|---|
| FHA | Two years of employment history, with any number of employers, and an explanation for gaps. After a gap of six months or more: six months in your current job plus two years of work before the gap |
| Conventional (Fannie Mae) | No minimum history for fixed salary or hourly pay. Hourly pay with changing hours needs 12 months. A signed job offer can qualify you before you start |
| VA | Two years of employment history, and time in military service counts toward it |
| USDA | Two years of income history, reviewed to judge whether the pay is stable and likely to continue |
FHA's rules come from HUD Handbook 4000.1, Fannie Mae's from its Selling Guide sections on base income and employment offers. Time in school or the military generally counts toward the two years when you can show a diploma, transcripts or discharge papers, which is why recent graduates and veterans can buy soon after starting work.
Buying before your first day
Fannie Mae's Selling Guide allows a Conventional purchase on a job offer you haven't started yet. The offer has to be fully signed and non-contingent, meaning no conditions are left to meet, and it must show the employer, the position, the pay and the start date. When the first paystub won't arrive before the lender delivers the loan to Fannie Mae, these limits apply:
- The home is a one-unit primary residence you're buying.
- The start date is no earlier than 30 days before closing and no later than 90 days after.
- You qualify on fixed base pay only.
- You hold extra reserves, either six months of the full house payment or enough to cover your bills from closing until the first paycheck, plus one month.
- The employer isn't a family member or anyone with a stake in the sale.
Buyers relocating to Florida for a salaried job use this route often.
A worked example: new job, better pay
A buyer spent four years as a dental assistant at $19 an hour. Three months ago they moved to a new practice at $23 an hour, full time. The lender qualifies them on the current rate:
- Old pay: $19 × 40 hours × 52 weeks ÷ 12 = $3,293.33 a month
- New pay: $23 × 40 hours × 52 weeks ÷ 12 = $3,986.67 a month
At FHA's 46.9% housing ratio, the new pay supports a house payment of $1,869.75. With $300 of other monthly debts, the 56.9% total ratio would allow $1,968.42 for housing, so the 46.9% figure is the cap. The old pay would have supported $1,544.57.
| Old job | New job | |
|---|---|---|
| Monthly income | $3,293.33 | $3,986.67 |
| Maximum house payment (46.9%) | $1,544.57 | $1,869.75 |
| Approximate price with FHA at 3.5% down | $192,000 | $240,000 |
The prices use a 5.75% rate on a 30-year fixed, taxes at 0.85% and insurance at $220 a month. The raise adds $325.18 of monthly room and about $47,000 of buying power. Because the buyer stayed in the same field and has four years of history, FHA counts the new pay from the start. Overtime at the new practice wouldn't count yet, since pay that varies generally needs a track record first.
Job changes that need more paperwork
- Moving to commission or self-employment. Pay that varies, and business income, usually needs a history before a lender can average it. Self-employed buyers normally qualify on two years of tax returns.
- A gap of six months or more. Under FHA, your current income counts once you've been in your current job for six months, with two years of work before the gap.
- Several job changes in a short time. Expect to write a short letter about each move. Changes that raise pay or stay in one field read well to an underwriter.
Most job changes, a move to equal or better pay in the same kind of work, need nothing beyond the usual paystubs, W-2s and a verification of employment.
Run your new pay through the affordability calculator to see your price. Have your offer letter or first paystub in front of you when you call AAA Capital Funding at 888-601-8344, and we'll tell you which program counts your new income soonest.