Requirements

Does FHA require a two-year work history?

Short answer

FHA wants stability and likelihood of continuance — not a rigid two years on the same job. Two years in the same field with a recent same-field job change is usually fine. School and military service count toward the two years. New self-employed ventures generally need two years of business returns to qualify.

Plain-English explanation

FHA's documentation guidance asks for a stable two-year work history, but the rule is flexible in practice. Recent same-field job change with a higher salary and no gap is rarely an issue. Job gaps need a written explanation and re-establishment of employment. School transcripts and military service records count toward the two-year window. Probationary periods and commission-only positions in the first year of self-employment trigger more scrutiny. Subject to FHA/HUD guidelines and lender overlays.

Practical example

A buyer leaves a 3-year W-2 sales job for a higher-paying same-industry sales role, no gap. The new role has a 60-day pay history. The lender clears the file because the same line of work plus higher income is a continuance signal. A different buyer leaves a 5-year W-2 job for a brand-new self-employed venture — that one usually needs two years of business returns before FHA qualifies.