When discussing the real estate and mortgage markets these days, it is almost a necessity to also discuss current unemployment numbers because one of the basic qualifications a potential home buyer must meet in order to obtain a mortgage is "a consecutive twenty-four months of employment", preferably with the same employer depending on his/her overall work history. According to FHA requirements and guidelines a mortgage applicant must be able to document the most recent two years of employment regardless of whether s/he has perfect credit and a large down payment (twenty percent or more).
Short-term housing - Home away from home
It seems then that when an individual is laid off (fired) from the job that s/he held for a considerable period of time his/her ability to purchase a home becomes almost non-existent and therefore has a direct impact on the reporting of housing units sold in that region of the country. Housing sales for the month of July, 2010 showed a reduction of twenty seven percent (27%). This decline is most likely attributed to the continued unemployment situation that has been a constant problem throughout this recession.
Short-term apartments in various US cities
So we know that the economy is not good as measured by unemployment which directly affects real estate and mortgages in a negative manner; What hasn't been determined yet is how to solve (or improve) the situation. What are the answers? Get a job? A new job in which your income is similar in amount and frequency would be acceptable to the FHA and you may still qualify for the mortgage (but only after you have received your first 30 days in salary) because your work history on the previous job can be added to the first month on the new job and used to satisfy the two year requirement.
Refinance.com mortgage loans
What if companies are not hiring? This has become an often-repeated reason for the continued high unemployment (9.6% as of yesterday's - Friday September 3, 2010 - report) and will continue as the main reason until companies begin to hire again; But, is there perhaps another option? Is there freelance work available that does not require a company to provide all the benefits that an employer must (e.g. health care, workman's comp, paid vacations, etc.).
FHA-insured mortgage programs discussed
If your new freelance (independent contractor) work is comparable to the work you had done for the employer that laid you off, and you can show proof of earnings (30 days worth of pay statements or other documentation), and prospects for continued work are good or excellent, your chances of getting a FHA-insured mortgage approval may still be very good. Of course, through this process of being laid off and reapplying for jobs as well as having to settle for freelance work could have a rather negative impact on your desire to pursue a home purchase, and this is certainly understandable in these times of uncertainty.
Mortgage Stories: FHA mortgage program info
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Roomorama New York City Short Term Rentals

  

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