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I am a recent college graduate and accepted a job offer in New York and will start working early 2018. I would like to purchase a house but will not have the standard 30 days paystubs before.
asked Dec 4, 2017 in FHA Loans by anonymous

1 Answer

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Congratulations on your new job and recent graduation.

Most mortgage programs allow loan approvals for applicants with offer letters, provided that the applicant meets the other guidelines of the program, and that the letter complies with the lender requirements. To get rates and terms from several competing lenders in New York, simply click here https://themortgagereports.com/ratequote and complete a short form.

For an offer letter to be accepted as proof of income, it should meet these five criteria:

1. The job must not be subject to any contingencies, or you must prove that contingencies have been met. The letter must be signed by the applicant and the new employer. It must state the position, pay, and start date.
2. The job start date must be within 90 days of the mortgage closing date
3. The subject home must be your primary residence
4. The subject home should be  a detached single-family residence, townhome or condominium
5. You must have enough "reserves," or funds to pay your mortgage, real estate taxes and homeowners insurance, plus all of your other accounts like credit cards and auto loans, for the period between closing and the job start date, plus an additional month. If your job starts in 60 days, for instance, you will likely need three months of funds to cover all of your monthly accounts (excluding living expenses like food and utilities), and mortgage principal, interest, property taxes and homeowners insurance.

Alternatively, you must show that you have at least six months of funds to cover principal, interest, taxes and insurance for the new property.

Here's an article that explains offer letter mortgages in detail. https://themortgagereports.com/8812/offer-letter-mortgage-income-approval

Thank you for writing, and please get back to us if we can help you further. We want each visitor to get the information needed and to have a great experience at The Mortgage Reports.
answered Dec 4, 2017 by GinaPogol (47,650 points)
edited Dec 4, 2017 by GinaPogol

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