FHA Loans
A short work history might limit the ability of an individual to obtain an FHA home loan, as they strongly prefer individuals to show at least two years of steady employment, Investopedia.com says. Not only two years of steady income, but steady income at the same job or place of employment, with less than one month's gap in any break in employment. In addition, FHA income and employment requirements expect the individual is expected to remain at that job for three years following the loan.
Credit Lines
A person who has a short work history might appear risky to many lenders, whether you're applying for a credit card, an auto or a home loan. Unless a person is gainfully employed, she can't repay a loan or meet minimum payment requirements. Self-employed individuals may need to offer proof of income for at least two years, showing tax returns and perhaps profit and loss or balance sheet statements, states Investopedia.com. Bank loans require a detailed account of work history and will ask for current and past employment as well as employer contact information on loan applications. A person with a short work history is likely to be declined as repayment figures are balanced against that person's ability to generate a steady income.
Loan Processing
Most lending underwriters will check an individual's work history before signing off on any type of loan. An individual who has recently changed jobs, or one who shows a sporadic work history often triggers alarm buttons for underwriters regarding the ability of that person to repay the loan on agreed upon terms, states Bankrate.com. Consumers should be aware that a letter from a supervisor is often required by underwriters.
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