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Will job gaps be a problem when applying for a VA loan?

A road sign with "You're hired" and "you're fired" written on it

Before you apply for a VA-Guaranteed loan, it is important to ensure you or a loved one has met the employment requirements determined by the Department of Veteran Affairs. These requirements require a veteran to have at least 2 years of consistent, full-time employment. This steady employment is required simply because a consistent job is needed to sustain a mortgage.

What happens if I haven’t worked at least 2 years in a full-time position?

Well, that is what they call a job gap. Having a job gap does not keep you from a VA-Guaranteed Loan. In fact, there are many ways to provide acceptable reasons for your unemployment. One of the solutions is providing an explanation.

Writing a good letter of explanation, which includes the reasons to why you have/had a job gap, will better your chances for eligibility. Some of the accepted reasons for job gaps are:

  • Leaving the work force for educational purposes. We look at going to school to benefit your future career as a job.
  • Being on maternity leave or being a homemaker. Later, you might have decided to go back to work once your children were of a certain age.
  • You had an illness or were on sick leave.

Again, if you have a valid reason for your job gap, then you are not automatically disqualified for a VA home loan. If you have no explanation for your job gap or you simply decided to take a break from employment or you have jumped from job to job, your chances for approval are unfortunately slim.

Our employment verification process can easily be completed with one of our VA Home Loan Experts available at a time most convenient for you. The process starts with providing the appropriate documentation that stands as proof of employment.

For those who have at least 2 years of employment

You will have to provide the following:

  • VA Form 26-8497, Request for Verification of Employment (VOE), or any format which furnishes the same information as VA Form 26-8497
  • A recent pay stub

*Please remember that the VOE and pay stub must be no more than 120 days old (180 days for new construction).

For those who are self-employed

You will have to provide the following:

  • Current financial statements that include: year-to-date profit and loss statement, and a current balance sheet
  • Tax returns
  • Schedules for the previous 2 years

For those who have income from commissions

You will have to provide the following:

  • VOE (VA Form 26-8497)
  • The basis for payment and the rate at which commissions are paid (semi-annually, monthly, etc.)
  • Tax returns and all schedules for the previous 2 years

For those who are active-duty home buyers

You will have to provide the following:

  • A Military Leave and Earnings Statement

Remember, you are not automatically disqualified if you haven’t had steady employment. There are many specifications and exceptions to the home loan process that can all be explained by one of our experts at VA Loan Spot. Every situation is different, so we are here to take a closer look and help decide the best path for you and your family. Please contact a VA Home Loan Expert at 800.537.2050 with any questions. Get the VA Home Loan you deserve.

Bobby Atkisson

Bobby Atkisson

Bobby Atkisson is a seasoned mortgage professional who provides high quality financial services to military members and veterans. With over 14 years experience in the lending and financial industry, his mission is to provide high quality mortgage programs with the most competitive interest rates. For expert advice and guidance on VA Home Loans and Refinance, contact Bobby today at 800-537-2050.