In order to qualify for a California VA Loan, you must be employed. Generally, the lender will want to see a 2 year history of employment. The exception is the California VA IRRRL loan for which you only need to becurrently employed (don’t need a full 2 years).
If you have had a gap in employment over the past 2 years, you may be required to provide a signed “letter of explanation” for the gap. As long as you were employed in the same line of work prior to the gap, you will be fine for qualifying purposes.
For a California VA Loan, the lender typically will want to see that you have also been in the same line of work for 2 years as this will demonstrate stability and consistency of income. This is especially true of any variable income sources such as commissions, bonuses, or self-employed income. For “fixed” income sources such as if you are on salary, or hourly with a guaranteed 40 hour minimum per week, lenders will sometimes allow for only a 1 year history as long as you have an overall 2 year work history.
Recently discharged Vets can also get around the 2 year requirement, especially if they are working in a job which they either did in the military, or were trained for in the military. With less than 1 year history, the Vet will be required to get a signed letter from their employer explaining their employment situation and stability.
One other exception to the 2 year requirement for a California VA Loan is a parent returning to the work force after caring for their children. Exceptions can be made in this case to allow for their income to be used for qualifying, but if they are in a variable income job such as commissions or self-employment, it will be very difficult to qualify, unless they were employed in the same line of work prior to caring for their children.
Employment history and situations are unique to every borrower. We would be honored to help answer your questions about a California VA Loan, and don’t believe in “sales tactics,” just the honest advice and service you deserve.
DRE/NMLS 01854992 1909488/225910
1401 Halyard Dr. Ste. 130
West Sacramento, California 95691
P: (916) 371-6300Email: Lhawkins@hawkinshl.com