USDA Home Loans for Teachers in Florida, Texas, Tennessee, and Alabama!
USDA Home Loans for Teachers in Florida, Texas, Tennessee, and Alabama!
Can a teacher qualify for a USDA home loan if they are changing school districts? Can they close on a home before 
their first paycheck is received?
In today’s video, I will explain how teachers and other professions can qualify for a USDA home loan after an employment contract has been signed, but before their first paycheck has been received!
Also, if you have not yet done so, feel free to download our newest “USDA Blueprint” with the link below. This free guide is designed to help walk you through the USDA process step-by-step and is a great educational resource for both homebuyers and their Realtors alike.
USDA Home Loans for Teachers in Florida, Texas, Tennessee, and Alabama!
How does a teacher qualify for a USDA home loan when changing school districts?
Accepting an offer to start a new position is an exciting moment. However, it can also be stressful, especially if you are required to move to a new city, purchase a home, and prepare for the first day of work all at the same time!
Fortunately, at Metroplex Mortgage Services, we regularly encounter these situations and can confirm that USDA guidelines offer flexibility for certain professions where employment is accompanied by a signed offer letter or employment contract, among other qualifications discussed later in this article.
A example of this situation would be a teacher changing school districts where we are able to document both current and previous employment along with documenting continuity in the same profession.
USDA Guidelines
In situations where an applicant is a teacher changing school districts or when an individual is moving to a new employer, USDA guidelines permit the use of a signed offer letter or employment contract in place of current pay stubs as long as it meets the following conditions:
- The employment contract or offer letter must detail terms of the employment and income
- Employment must begin within 60 days of the loan closing.
In addition to the employment contract or offer letter, the below conditions must also be met:
- The applicant must have at least one year of previous employment history. Previous employment can span across multiple employers but must be verifiable.
- The applicant must remain within the same profession
- The underwriter must determine that the applicant has reserves available after loan closing to cover all monthly liability payments and the new mortgage obligation until employment begins.
Additionally, we will want to review to determine that any contingencies have been cleared.
Summary
It is common for us to receive questions regarding USDA home loans for teachers in all areas where USDA home loans are eligible, including Florida, Texas, Tennessee, and Alabama.
Provided certain requirements are met, it can be possible for a teachers changing school districts to qualify for a USDA home loan, even before their first paystub is received.
The USDA home loan program is very powerful, and ensuring that you are working with a true USDA Approved lender with a proven track record of success will help you maximize the benefits of this program and alleviate the stress of changing employers while trying to purchase a home.
As a USDA Approved lender, we are here to help. Just call or email to discuss your scenario and let us show you the “Metroplex” difference!
Call/Text: 863-593-2001
Email: SeanS@MPLX.org
