At MortgageDepot, we understand that you can’t pass up the chance to make yIf you are applying for a mortgage in Pennsylvania, timing is everything. Unfortunately, life doesn’t care about timelines! Sometimes the perfect real estate opportunity presents itself at an imperfect moment.our real estate dreams a reality. What if you are in between jobs when you need to make a real estate move? Our experienced loan officers have a solution for you.
When Your Closing Date and First Day of Work Aren’t Ideal
Some people think that getting a mortgage before starting a new job is like putting the cart before the horse. We know that’s not always the case. Just because you’re not employed at the exact moment that you’re scheduled to close on a real estate purchase, it doesn’t mean that you should be out of the running!
If your new job doesn’t start until after the closing date, mortgage lenders will require proof of additional assets on hand. That’s understandable. After all, it’s risky to lend money to unemployed borrowers!
We allow borrowers to use their projected future income up to 90 days after the closing date, but we require them to have PITI reserves to do so.
What does this mean for our Pennsylvania borrowers? If you need a mortgage in Pennsylvania, this means that you have approximately three months after closing to start earning your anticipated paycheck. This makes you want to breathe a sigh of relief, doesn’t it?
Fannie Mae vs. Freddie Mac
Fannie Mae and Freddie Mac are a bit different when it comes to PITI reserves. Here’s the deal:
Fannie Mae mortgages require at least six months of PITI reserves in addition to any other individual reserve requirements.
If the borrower doesn’t have six months of PITI reserves, they can still qualify for a Fannie Mae mortgage. They must have enough PITI to cover the number of months before the job start date, up to three months.
Freddie Mac mortgages only require enough PITI reserves to cover the number of months up to the job start date with a three-month maximum.
Just like other unique situations, there are always restrictions to keep in mind. Here are the ones that apply here: