Fellowship Income

I know this may not be a popular issue, like the HVCC or New FHA Guidelines, but it may affect some borrowers, so I wanted to discuss it.

When you are receiving income because you are on a Fellowship, it is considered, temporary income. Even though you may be on a regular salary, the banks will not treat it as a permanent job. Most Fellowship are usually for 1 year, with a option to renew the Fellowship at the end of each year. Therefore it makes the underwriting a little more complicated. What you can do to the process go smoother, is provide documentation from the employer, that provides their Fellowship history, their probability of continued employment, the probability of becoming a permanent employee, and what an asset they are to their department/agency. For the probability of continued employment, banks will like to that the Fellowship it will be guaranteed for at least 3 years. Documentation would need to be on letterhead and must be obtained by us, the lender. At Choice Finance we have become adept at closing these loans as we have funded several purchases and refinances for employees, Fellows at NIH. Please don’t deem yourself, “unable to qualify” without talking to me first.

Maryland Sr Mortgage Broker
Fairfax, VA Homes