Despite short employment time at new job, clients gets a jumbo loan for condo

Mortgage adviser: Tom Banducci, Guaranteed Rate. Property type: Highrise condo in San Francisco. Loan amount: $985,000. Loan type: Jumbo 7/1 ARM Rate: 3.625 percent with no points (4.063 APR) Purchase price: $1.735 million. Backstory: Tom Banducci’s clients were referred by their Realtor, Justin Welch at ClimbSF. Welch had a qualified borrower with a new job history and asked Banducci to review their situation.

Most underwriting guidelines require a consistent two-year job history in the same field of work and manner of employment: Two years as self-employed or two years as a W2 employee, for example.

Banducci’s client had a long-standing work history in the tech industry, but he had worked as a self-employed consultant for a few startups for the past two and a half years. Much of his compensation was in company stock during this time, so he didn’t have a lot of actual cash income to show on his tax returns.

The last company he worked for as a consultant was the company that hired him. His new job was a salaried, fulltime position, but he only had three months at his new job. Since many jumbo lenders want six months of seasoned income on a new job after a leave of absence or after a period of self-employment, Banducci knew he needed to completely document his client’s work history to show that his previous work was consistent with the responsibilities of his new job.

Before ratifying on a property, Banducci asked the client for a detailed letter explaining his previous work history in the tech industry. He also asked the client’s CPA to write a letter verifying the client had a two-year history of being selfemployed. Banducci combined the above with the client’s employment offer letter for his new job and a letter explaining that the client had worked on a contract basis for the company for seven months prior to being hired full time.

Since Guaranteed Rate is a direct lender, Banducci was able to preflight his client’s work history with a Jumbo Underwriting Manager. Banducci was able to get an exception for the client’s two-year work history, and the client was able to make a noncontingent offer on a new San Francisco condo.

The purchased closed in 25 days.