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Having a consistent employment history is a key part of your home loan approval.  Lenders want to know that the income being used to qualify has a proven history and is likely to continue.  Generally speaking, you should have a two year employment history of consistent earnings with minimal gaps in employment.

Despite popular belief, you don’t have to be with the same employer for two years in order to qualify.  In fact, you could have had multiple employers over the last few years and still be eligible for a home loan.  You’ll want to make sure your earnings and pay structure are consistent (i.e. hourly vs. salary vs. commission etc.) while staying in a similar industry for this to work.

If you have variable income (like bonus or commission or overtime), you’ll need to have a consistent two year history of receipt.  There are exceptions that allow use of these incomes as long as you have consistent earnings for at least 12 months and the lender feels comfortable the income will continue.  For self-employed you really need to have a consistent two year history of reported income to qualify for standard loan programs.

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