April 5, 2020 at 12:51 am #66772
So my job was closed due to COVID 19 and we are supposed to return April 12. I doubt that will happen and hesitated to apply for unemployment. If quarantine lasts longer and I decide to apply for unemployment will that affect my qualification?
I have also put an offer in on a house
My last check was dated 3/26/20 so I know I have 30 days to avoid the “employment gap” I’m just trying to see how to proceed in the meantime.
I have savings but if I can benefit from Unemployment I would prefer to use those funds without altering my qualification…
HELP PLEASEApril 5, 2020 at 7:24 am #66773
Yes. You cannot be qualified while on unemployment. You will either need to have a gap of 30 days or less between full time employment or wait 12 months (?) After you start full time again. It has been mentioned that there is a possibility if you can prove any loss of income is a direct result of covid 19 then you might be able to be qualified with your loss of income averaged out over a 12 month span.
If the alternative to unemployment is spend your savings then go on unemployment.
April 5, 2020 at 11:20 am #66775BakerTheBakerMember
- This reply was modified 8 months ago by Nelsont.
You should also withdraw that offer. You won’t be able to proceed if you are unemployed.April 5, 2020 at 12:48 pm #66776
Thanks for the responses
From what you all have said I will continue without filing for unemployment
And I dont want to withdraw my offer because I’m not unemployed. I still have a job to return to its just a matter of getting the green light to return to work
My MC hasn’t suggested I hold off on the housing process so I dont think I need to
My job has been paying via their insurance but the payments have stopped because we were supposed to return April 12. I wanted to file for unemployment because that’s what my job suggested we do if the hiatus was longer… just thought unemployment was an option without interfering with my qualification.
I’m a performer and that’s what most of us was suggested to do even if we were compensated from our employer
This COVID situation in my opinion is a special case because its forced people to halt from working until life resumes so why cant I take advantage of the unemployment benefit if it’s on the tableApril 5, 2020 at 1:11 pm #66777
You certainly can. However the mortgage industry doesn’t accept unemployment and to my knowledge of all the rules that are being relaxed income from a full time job is not one of them.April 5, 2020 at 2:50 pm #66778
@ttrumble would you mind weighing in
Again I still have a job with my current employer and we were scheduled to return April 12 however that will most likely not happen in the entertainment industry
However I think it’s best to continue pushing with the process and once life resumes showing paystubs and verification wouldn’t be an issue
While I have been paid during the break my job suggested applying for unemployment as well and I would like to take advantage of that if possible but I will continue to opt against it if that decision will do more harm to my housing process
I just dont want to use savings right nowApril 5, 2020 at 2:58 pm #66779
Based on this my assumption would be if you apply for unemployment and don’t take advantage of it a letter of explanation might clear it up but if you take unemployment then you would need to wait 12 months or until you go back to work and receive a couple paychecks. Maybe @ttrumble can verify.
April 6, 2020 at 12:24 pm #66788TTrumbleMember
- This reply was modified 8 months ago by Nelsont.
Go ahead and file for unemployment.
First and foremost, let me clarify that as of the time of this writing,
there have been no changes nor are there plans for any changes in qualification requirements as a result of the COVID-19 situation. Anything anyone has said about possible exceptions, including me, is strictly speculation.
While the 30-day gap rule is still the standard, any exceptions that may be allowed later will no doubt depend heavily on whether or not you have paid your rent and other bills on time during the employment gaps. SO MAKE SURE YOU KEEP EVERYTHING PAID ON TIME.
As long as it is a legal source of income, it doesn’t matter where it comes from as long as it is verifiable, so go ahead and file for unemployment instead of depleting your savings (i.e., your MRF, buy down funds, emergency funds, etc.) to keep your bills paid. The fact that you received unemployment benefits does not by itself create a qualification problem. It is the length of the employment gap that will create an issue.
Just because unemployment benefits cannot be used to qualify you does not mean you automatically get hit with a setback because you received it. Again, the employment gap is the issue, not having received the benefits. For qualification purposes, you will technically have zero income during that time, but it’s still worth it to receive the funds to meet your obligations without eating up your savings.
I hope that clarifies things.
Online Operations, NACA
April 6, 2020 at 12:46 pm #66791
- This reply was modified 8 months ago by TTrumble.
This helps so much. And I’ve spoken with my MC and she’s said the same thing… that every it’s truly contingent upon the employment gap.
My 30 day mark would be April 26 but assuming I wont be back to work until May will indeed cause me to surpass the 30 day mark so I’m sure I will need a LOE from my employer and a few paystubs to deal the deal.
I’m going to keep moving but I have faith all will work out..and I’m continuing to pay everything on time
Thanks for the help @ttrumbleApril 8, 2020 at 1:05 pm #66846TTrumbleMember
You are right on track with the idea about the LOE form the employer and getting a couple of new paystubs as a starting point for getting back on track whether any exemptions are granted or not. Good thinking!
Nobody knows exactly what will happen as we continue to ride this out, but you keep thinking like that and continue to have faith and determination and it will all work out in the end.
Online Operations, NACA
firstname.lastname@example.orgApril 8, 2020 at 1:31 pm #66848
This may be a stretch but wondering if there’s negotiation room with underwriting (once I get to that point) to negotiate putting more down, paying three months of mortgage upfront or placing a few months on the backend of the mortgage if they’re concerned about being able to make payments while work is shut down.
This is a stretch but just wondering if you think there will be room for negotiation @ttrumble or anyone please chime inApril 8, 2020 at 2:33 pm #66850
Once you have the mortgage you can pay as much as you want and specifically identify amounts toward principle and/or interest as long as the minimum paid is the total amount due. But all that does is potentially shorten the length of the loan. It does not to my knowledge apply to next month and you would still be on the hook.
As far as putting more up front it would probably go to interest rate buy down and principle reduction without exception which would lower your monthly payment and make it easier to save…April 30, 2020 at 10:18 pm #67511coquipr79Participant
Hello. I wonder if the above is also true for those being furloughed? I am being furloughed so I am still with the company just not getting paid until I am told to return. My employment status won’t show a gap on unemployment but will show a gap of pay for the time I’m on furlough. I’m assuming a LOE will be acceptable?
April 30, 2020 at 11:26 pm #67513
- This reply was modified 7 months, 1 week ago by coquipr79.
As always everyone’s situation varies but your situation is very similar to mine
I am furloughed and currently accepting unemployment (with permission from my MC)
From my situation I provided a LOE explaining my work situation, got an Employment Verification from my employer stating I’d be returning to work post COVID 19 at the same rate of pay and NACA agreed to use my unemployment funds as “income” during this time.
What else is there to do?
I find myself very fortunate and favored with this scenario but honestly it’s fair.
I would suggest inquiring about this option…
Also want to note all of bills have continued to be paid on time (rent, student loans, credit cards etc)
Currently at the credit access stage and hoping to get to the closing table soon.
Wishing you luck!April 30, 2020 at 11:56 pm #67514coquipr79Participant
Thanks for the reply. Interesting that NACA allowed your unemployment income to count but these are very special time we are in with Covid-19. Good luck with credit access stage! If you wouldn’t mind, could you post an update if you got through credit access even while on furlough? It would go along way toward helping me decide if I should continue with the process now or what until I’m off of furlough, hopefully June 1. Thanks!
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