I have a Section 502 loan application that I’m packaging where the applicant has only been at their current job for about three months but they have been in the same field of work for several years, is this considered stable and dependable?

Sincerely, Confused about what is stable 

Dear Confused about what is stable,

Yes! This would be considered stable and dependable employment and meet the eligibility requirements. (But the rest of the package counts too!) In fact, Rural Development doesn’t have a requirement that applicants have a history of being in the “same field” for any particular amount of time. They are looking at stability of income rather than stability with an employer or in a particular position. The only exception is if the applicant is self-employed, in which case she/he would need a history in the same field.

Here’s an example: In the two-year review period an applicant may have had a job as a checker at a big box store, a receptionist at a hair salon for a few months and, finally, cleaning dental equipment at a local dentist’s office where they’ve been for nine months.

An applicant may have worked for three employers in the past two years, but during that time he/she exhibited a stable income. This is acceptable. The applicant does not have to show two years with the same employer or field of work, although employment gaps in excess of 30 days must be explained.

Good luck and keep packaging!

Sincerely, Sher

Dear Sher is a regular Self Help Builder News feature. If you have a question you would like answered or researched by Sher, please send it to asisco@rcac.org and your question may be featured in a future publication