Kentucky USDA Mortgage Program
The USDA Home Loan Program does not technically have an minimum employment history requirement but lenders are required to verify applicants' employment history for the prior two years and confirm that the applicant's income is stable
Applicants are required to explain any employment gaps of at least one month
Explainable employment gaps of six months or more are also permitted as long as the applicant can document the reason for the gap, has been back to work for at least six months and has a two year employment history prior to the work gap
Self-employed borrowers are typically required to demonstrate a two year job history as documented by the applicant's tax returns
A self-employed job history of between one and two years is permitted if the applicant was previously employed in a similar line of work for at least two years or one year of work plus one year of formal education or training
The lender is required to confirm that the self-employment income is expected to continue for at least three years
A self-employed history of less than one year is not permitted
An uninterrupted two year history in the same position is typically required for part-time employment although a part-time work history of less than two years may be considered if the lender verifies with the employer that the work is likely to continue at the same compensation level
Income from seasonal employment is permitted as long as the applicant has a two year work history and expects to be rehired for future seasons
The lender is required to determine that part-time and seasonal income is expected to continue for the next three years
Income from part-time or seasonal work must be reported on the borrower's tax returns to be considered by a lender
A consecutive two year payment history and determination by the lender that the income is expected to continue for the next three years is required for bonus, commission or overtime income to be considered
Bonus, commission or overtime income earned for less than a year is not permitted without significant compensating factors such as a change in the applicant's compensation structure
Lenders are required to explain any significant declines in bonus, commission or overtime income
Significant variations in bonus, commission or overtime income may require the lender to use an average period of more than two years to calculate the applicant's income
