FHA Feedback Message Regarding Employment Gap Explanation

[August 1, 2005]

We've updated Loan Prospector to reflect the Federal Housing Administration's (FHA) recent change regarding the amount of time a borrower needs to provide for an employment gap. We’ve modified the AQ LP feedback message to reflect the increased time period for which a borrower must provide an explanation for an employment gap. Previously, an employment gap of 60 days or greater required explanation.

Now, FHA requires that borrowers provide an explanation only if there is an employment gap of 180 days or greater. The updated message, “If applicable, provide an explanation for employment gaps greater than 180 days” will appear on your LP Full Feedback Certificate in the Documentation Guidelines section when applicable.