FHA Employment History and Job Gap Guidelines
FHA wants a two-year work history, but that phrase is widely misunderstood. It does not mean two years with the same employer, and it does not mean two years in the same field.
What the two-year rule really requires
Multiple employers across the two years is fine
You do not have to stay in the same line of work
HUD sets no minimum time in your current job — some lenders add their own overlay here
Time in school or military service counts, documented with transcripts or a DD-214
A new job at higher pay is viewed as a strength, not a risk
If you start a new job before closing, the new rate of pay must begin within 60 days of closing and be verified in writing
Employment gaps — what triggers what
Gap Length What FHA Requires
Under 1 month Generally no action needed
1 month or more within the last 2 years A written letter of explanation
6 months or more (an "extended absence") Employed in your current line of work for at least 6 months at the time of case number assignment, and a documented two-year work history prior to the absence
The detail most people miss: HUD updated this language from "current job" to "current line of work." So if you returned to work six months ago but changed employers once inside that window, you can still qualify — provided you stayed in the same line of work and the prior two-year history checks out.
Frequent job changes
If you changed employers more than three times in the previous 12 months, or changed
