Getting a Mortgage After a Recent Job Change

The two-year employment history requirement

Lenders want to see a two-year history of stable employment. This doesn't mean you must have worked at the same employer for two years — it means you need to show two years of continuous employment in the same field or industry. Job changes within the same field are generally acceptable, especially if they represent career advancement or a pay increase.

What matters most is continuity of income and career trajectory. A nurse who changed hospitals, an engineer who moved to a new company, or a teacher who changed school districts — these are all acceptable job changes for mortgage purposes.

Employment gaps

Short employment gaps (less than 30 days) are generally acceptable with a letter of explanation. Longer gaps require more documentation. Lenders want to understand the reason for the gap and confirm that employment has resumed and income is stable.

Common acceptable gaps include:

• Maternity or paternity leave (with documentation of return to work)
• Medical leave (with documentation of return to work)
• Layoff followed by re-employment in the same field
• Seasonal employment with a consistent history of returning to work

Probationary periods

Some lenders are cautious about borrowers who are still in a probationary period at a new job. If your offer letter or employment contract specifies a probationary period, lenders may want to see that the probationary period has ended before closing.

FHA and VA guidelines are generally more flexible on this point than conventional. If you're in a probationary period, discuss the timing with Morgan Hardy before making an offer on a home.

Career changes (different field)

A career change to a completely different field is more challenging. Lenders want to see that the new career is established and that income is stable. If you recently changed careers, waiting 6–12 months in the new role before applying for a mortgage strengthens your position. If the new role is in a field where you have relevant education or training, that can help document the transition.