Background: I & the wife are looking to buy a house priced at $250k via an FHA loan. One of the requirements for the loan is that we have a 2 year continuous employment.
I have a 1 year gap in income(i.e. I was employed but not paid because I wasn't working on any project) Anyways, after that 1 year gap, as of today i have been employed and earning for 1 year and 7 months. So I am short of the 2 year employment requirement by 5 months. We have good credit scores (715 - 750)
Question: Due to this we have been declined a pre-approval by one bank and asked to come back in 5 months time. Another major bank has pre-approved us(based on all the info i gave them on the phone), but I fear that once we start closing, they will start reviewing all the info i gave and decline the loan at a late stage of closing.
I don't want to wait 5 months and risk somebody else picking up the house in that time. Nor can i put down 25% as down payment on a conventional(non FHA) loan.
What kind of creative financing strategy can be done here?
UPDATE:2 of the major banks that pre-approved me explained that my history is fine and since i have been employed in the same line of work before the gap, it is not an issue. Also since I was employed and earning for more than 2 years before the gap, that bolsters my case. I will just need to explain my case in writing. But my file is strong.
But if any body has any better and creative financing strategies, please do share.