USDA borrowers re-entering the workforce may only need a minimum of 6 months if there is evidence of previous employment history.


Yes, 6 months should be fine. Here are the guidelines from the USDA manual for your reference.

[tweet-start]USDA may only require 6 months of employment history when there is evidence of previous employment history.[tweet-end]

Salaries, Wages and Other Forms of Repayment Income

The income of each party to the note must be analyzed to determine whether it can reasonably be expected to continue. If the applicant intends to retire within the next 12 months, the repayment income will be the amount of retirement benefits, social security payments, and other retirement income.

Employed income: Stable income may be income from primary, secondary employment, including base earnings plus consistent and documented secondary income such as bonuses, commissions, overtime, additional part-time employment or seasonal employment. All income sources must be documented to determine that the applicant’s income is stable and likely to continue at the level used to qualify the applicant for the mortgage loan request.

Re-entering the Workforce: Applicants who re-enter the workforce after an absence to care for a family member or minor child, extended medical illness, or other circumstances reasonable to the lender and have less than a two-year employment and income history, this type of income source may be considered as repayment income if the applicant has been at the current employer for a minimum of six months and there is evidence of a previous employment history.

Copyright – 2016 –

2018-01-10T09:04:33+00:00 January 9th, 2018|USDA|