Covid Employment Gap

[lifepartners]

Hello

My partners and I are very close to qualification, and will likely be qualified before the new year if all goes well. I’m wondering if I’ve covered all my bases to explain my employment gap from March-June 2020. I was let go from my job in mid-March and had a few prospects lined up. I was at the reference-calling stage with several places, and I was expecting to field multiple offers. Instead, Covid hit the country hard, and all of my potential offers got back to me saying they were pausing or freezing hiring for the time being.

I applied for unemployment, and since there were extra Covid stimulus payments attached to my checks, I actually started making more money than I did at my last job. All my bills were paid on time and since student loan interest was frozen, I actually made a hefty dent in my debt. I was still saving as well. At the same time in March, I started classes to get my real estate license, under the idea that I would make money by finding a new job in my industry or passing the state exam and selling a home. Fortunately, I was able to get hired in late June, and have been working since.

I was let go from my job for reasons unrelated to Covid, but I was unable to secure another one in my industry directly because of it. I was taking an educational course, and actively hunting for a job for the entirety of my unemployment. There is an employment gap of more that 30 days, but due to these extreme and unusual circumstances, I believe I have enough evidence to still get qualified.

When we attended ATD a month ago, the counselor said all I had to do was explain how the gap related to Covid, and provide details. (For clarity, I am purchasing with 2 co-borrowers, and they each have 24+ month employment histories.) We have saved significantly more than our MRF (in Los Angeles county, a high-cost area), and have been saving more than our payment shock + the extra $400 in landlord savings each month.

With the details I’ve described above, and my detailed LOE, is the gap likely to prevent us from being qualified?

tl;dr
I was unemployed for more than 30 days due to Covid. My income remained stable, I continuously searched for jobs in my industry, and I began an educational course. All of this is in my LOE for the gap, but I’m worried it’s not enough to get us qualified, even though my 2 co-borrowers have 24+ month employment histories and we have stable spending and savings habits.

Thanks in advance!

[Emmeleah]

Omggg I can’t wait until someone replies to this I’m going through literally the same thing. Only that i didn’t apply for unemployment i applied for a personal leave at my job, BUT i landed a job doing as a Covid tracer monitor ( a 1 year contract) and I make more there than my regular Job. So I am hoping and wishing this helps me stay on track. I’ve already applied for qualification and I have a few conditions. Maybe this doesn’t set me back 6 months that would REALLY suck

[TTrumble]

Hello lifepartners,

Your statement “I was let go from my job for reasons unrelated to Covid” is probably the key statement here, and it is not going to result in things going the way you would like.

To be exempted from the 30-day employment gap rule you must be able to prove that you lost your job as a direct result of the pandemic, usually with a letter from the previous employer, plus the employer must state that they are going to bring you back to the same or an equivalent job when conditions improve. In your case, the Covid exemption does not apply, and you will have to show a 12-month employment history once again in order to qualify.

Tim Trumble
Online Operations, NACA

• This reply was modified 2 months, 2 weeks ago by TTrumble.

[lifepartners]

Hi TTrumble

Thanks for that information. I’m still wondering if my entering an educational course makes any difference? Isn’t that one of the ways to avoind being penalized for the gap?

Also, if I got letters from the potential employers that wanted to hire me before Covid shutdowns, would that be equivalent to one from my previous employer? Without Covid my employment gap would have been 2-3 weeks at the pace I was , but with it, it was 3 months. At least one, but likely several of the employers would definitely agree and support my explanation that Covid was the deciding factor preventing my hiring.

Thanks again!

[lifepartners]

Hi again — Just want to see if anyone else has an idea if my mitigating circumstances are enough to clear the employment gap issue. Looking for guidance!

[lifepartners]

@TTrumble and @Nelsont any ideas on my response? I’ve copied it below

Thanks for that information. I’m still wondering if my entering an educational course makes any difference? Isn’t that one of the ways to avoind being penalized for the gap?

Also, if I got letters from the potential employers that wanted to hire me before Covid shutdowns, would that be equivalent to one from my previous employer? Without Covid my employment gap would have been 2-3 weeks at the pace I was , but with it, it was 3 months. At least one, but likely several of the employers would definitely agree and support my explanation that Covid was the deciding factor preventing my hiring.

Thanks again!

[Nelsont]

Here’s what I think. I’m not positive but I’m pretty sure any employer that didn’t employ you or offer employment would be off the table. I think you would have had to been offered employment with a delayed start date due to Covid. I think if you were let go as a direct result of covid you would have a leg to stand on but, as it is covid looks to be a setback rather than an exemption without an offer letter as opposed to what is essentially sorry not at this time.

Education also provides exemptions but usually in the form of sabatatcals. Exemptions are granted in the scenario you took a leave rather than quitting or getting let go.

Covid sucks. There’s no way around that.

[Author]

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