f. Analysis:  Applicant Employed Less Than 12 Months

Generally, employment less than 12 months is not considered stable and reliable.  However, it may be considered stable and reliable if the individual facts warrant such a conclusion.  Carefully consider

·   the employer’s evaluation of the probability of continued employment, if provided, and

·   whether the applicant’s training and/or education equipped him or her with particular skills that relate directly to the duties of his/her current position.

-Generally applies to skilled positions.  Examples include nurse, medical technician, lawyer, paralegal, and computer systems analyst.

·   If the probability of continued employment is high-based on these factors then the lender may give favorable consideration to including the income in total effective income

-An explanation of why income of less than 12 months duration was used must accompany the loan submission.

·   If the probability of continued employment is good, but not as well supported or employment will be terminated at some point in the future which can be reasonably estimated, the lender may still consider the income of an applicant who has been employed at least 6 months to partially offset debts of 10 to 24 months duration.

·   Determine the amount which can be used, based on such factors as

-   the employer’s evaluation of the probability of continued employment, if provided

-   the length of employment (for example, 10 months versus 6 months).

·   Include an explanation with the loan submission.