Refinancing before transitioning to a new job

[Carl Mccrory]

Hey BP need some advice on lending. I have a friend who just completed a BRR and is getting stuck at the Refinance part. He will be shortly leaving a high pay stable job (military pilot) for a low paying (40k/yr) job and it looks like this transition might be preventing him from qualifying for a cash out refi.

I am about a year out from possibly doing the same career transition and am looking to acquire my first rehab for a BRRRR- do most conventional lenders look at your near future career position for lending or just your present and past? If so, how far into the future would they base their decision on (6 months - a year?)

If this is an issue, how long after moving to a new career would lenders be likely to give financing?

Thanks in advance

[Upen Patel]

Hi! @Carl Mccrory. Thank you for your service.

To answer your question, we look at your current and past employment, and future if its known. So in the case of your friend, if he has turned his papers and an official date is set in the system, then the lender will know the future when we request a VOE (verification of employment). In that case the loan is based on the worst case scenario. If on the other hand, he has decided that he is going to be leaving soon, but there is nothing official, then the loan would be based on the current/past employment history.

Hope this helps you and your friend.