Furloughs impact on lending

[Kevin Zolea]

Hi all,

I recently just went under contract on a duplex that I will be house hacking. I work for the state of NJ and due to the impacts of COVID-19, our state budget has gotten crushed. Last night I got word that they came to an agreement with the Governer's office that we will have some furlough days but there will be no layoffs. So between June 29th - July 31st we have to take some variance of 10 furlough days. Essentially, I would not be losing any money and I will actually be making more due to the CARES ACT.

My question is should I be concerned about my loan not going through because of this? Is this something I have to tell my lender about? Or am I just worrying for no reason at all since I won't have any decrease in pay and my job is guaranteed? Any guidance would be greatly appreciated! 

[Brandon Blango]

Kevin, 

A fair question to ask indeed. If you know that your employment will not be impacted and there is no current knowledge of your inability to take on the loan then there should be no issue at closing, my opinion. Of the hundreds of pages you'll need to sign at closing, only one will ask you to initial 2 places under the Employment Affidavit: 1) No change to the employment information disclosed at time of loan origination and 2) No change to the business status disclosed on the Business Impact and Business Continuity disclosure. I closed on a property last week and COVID was top of mind for everyone but this covered the extent of paperwork on the topic of COVID impacts for me.