You’ve been accepted to your new job at Virginia Tech, or at Radford University, and you want to buy a house, but you don’t have two pay stubs to show your lender that you really ARE gainfully employed!
No problem. This happens a lot in the New River Valley.
From Dan Green’s blog:
Get an Offer Letter
To use “offer letter income”, all that an applicant must do is to meet these 5 criteria :
- Provide a non-contingent offer letter, signed by the applicant and the new employer
- Provide evidence that the job start date is within 90 days of the mortgage closing date
- Provide evidence that the subject home will be a primary residence
- Provide evidence that the subject home is a detached single-family residence, townhome or condominium
- Sufficient reserves to pay mortgage payments plus real estate taxes and homeowners insurance during the gap between closing and the job start date, plus an additional 3 months of reserves
We have a client doing this now, with Dan Green and Waterstone Mortgage. The one thing to be aware of is that you may want to have as much as six months of reserves (#5) – the rules for lending are an ever-changing target.
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