Just Changed Jobs? You May Not Have to Wait a Year to Buy a Home in Austin

Austin is a town where people change jobs the way other towns change their minds about the weather. You took the better offer in the spring, the new badge works, the commute is shorter, and now you want to buy a house. Then somebody tells you that you need two years at the same job before a lender will talk to you.

That has never been quite right, and as of September 26, 2026, it is even less right. Here is what changed, what still counts, and what to ask before you assume you have to wait.

The “two years at the same job” rule is mostly a myth

For a conventional loan, Fannie Mae’s Selling Guide asks the lender to look for a “reliable pattern of employment over the most recent two years.” Notice what that says and what it does not. It is two years of work history, not two years at one employer.

The same section says plainly that “a shorter employment history may be considered eligible for qualifying purposes” when there are positive factors, and that people who change jobs often can still qualify if their income is reliable. Moving from one software company to another for more money is not a red flag. It is usually the opposite.

So where does the myth come from? Mostly from self-employed rules, older FHA habits, and the same uncle who told you a mortgage broker costs more. (It doesn’t.)

What changed on September 26

Most conventional loans run through Fannie Mae’s automated underwriting system, called Desktop Underwriter, or DU. DU has an optional feature that can confirm your job and income electronically, using a verification report instead of a pile of paper and phone calls. When DU confirms it, Fannie Mae calls that “validation.”

Until this fall, DU would only validate employment income if you had been at your current job for at least 12 months. Fannie Mae’s September update changed that for people paid a fixed salary. For loan files submitted on or after the weekend of September 26, 2026, DU can now validate fixed base income with:

• At least 3 months at your current job, and
• At least 12 months of total work history, counting your current job and your prior job together.

In plain English: a salaried buyer who switched jobs in the summer, with steady work before that, now fits the automated path that used to require a full year at the new desk. Validation gives the lender more certainty, and certainty is what keeps a file from getting buried in extra paperwork requests.

Who this helps, and who it does not

This helps: salaried W-2 employees who changed jobs in the last year, have at least three months at the new one, and do not have long gaps. That is a lot of Austin.

This does not change:

• Hourly and daily pay. Fannie Mae says borrowers with variable base income, including people paid hourly or by the day, still need 12 months at the current job for DU to validate it.
• Bonus, commission, and overtime. Variable pay still needs a track record before a lender counts it.
• Self-employed borrowers. Business owners and 1099 earners follow their own documentation rules. If that is you, start with how self-employed mortgages work in Austin.
• Loans that do not go to Fannie Mae. FHA, VA, jumbo, and non-QM loans follow their own investor and agency rules. A jumbo loan in particular may still ask for more history. Ask before you assume.

One more thing, and this is my experience on real files, not a quoted rule: a sign-on bonus or a stock award from a brand new employer usually does not count toward qualifying yet, even if your base salary does. Plan your price range on the base pay and treat the rest as a pleasant surprise.

Gaps matter more than job changes

Here is the part people miss. Fannie Mae is more concerned with gaps than with switches. For borrowers with more than one employer, the Selling Guide says that “in no instance may the borrower have any gap in employment greater than one month in the most recent 12-month period,” with an exception for seasonal work.

So a clean move from Job A on Friday to Job B on Monday is easy to explain. Three months off between jobs to “find yourself” is a different conversation. It is not automatically a no, but it is something to talk through before you write an offer, not after.

What if the new offer lands while you are under contract?

It happens more than you would think. One of my clients accepted a new job this fall while she was in the middle of buying her house. Her offer letter did the job and she closed on time.

Fannie Mae has a section of its Selling Guide written for exactly this, called Employment Offers or Contracts. The short version:

• A signed offer letter can carry the file. It needs to be fully executed and spell out the position, the pay, and the start date.
• The first paystub has to show up. On the standard path, the lender needs your first paystub from the new job before it delivers the loan to Fannie Mae, which in practice usually means shortly after closing.
• Starting after closing is possible too. If you will not have a paystub in time, Fannie Mae allows a start date up to 90 days after closing on a purchase of a one-unit home you will live in, as long as you are paid a fixed salary and have extra reserves set aside to cover the gap.
• The new employer cannot be family or anyone else with a stake in the sale.

Here is the catch. Lenders confirm your job again right before closing, and some lenders add their own rules on top of Fannie Mae’s. Changing jobs while you are under contract is the mortgage version of repainting the car during the oil change. It can absolutely be done. It just goes better when the person doing the oil change knows about it first. If a new offer lands while you are in escrow, call me before you sign it, and I will make sure your lender is one that handles it cleanly.

Five questions to ask before you assume you have to wait

1. Is my pay a fixed salary, or hourly, bonus, or commission? The answer decides which rules apply.
2. How long have I been at the new job, and what was my total work history over the last two years?
3. Did I have any gap longer than a month in the last 12 months? Have the dates ready.
4. What kind of loan fits my price range? Conventional, jumbo, FHA, and VA do not all treat a new job the same way.
5. Which parts of my pay will the lender actually count? Base pay first, extras later.

If you are earlier in the process, start with how to get pre-approved in Texas, then read why your pre-approval and your loan amount are not the same number and how much house you can afford in Austin. Veterans and FHA buyers can see the program basics on the VA and FHA pages.

Why the lender you pick matters here

A rule change like this does not reach every lender on the same day, and some lenders add their own extra requirements on top of Fannie Mae’s. A bank has one answer: its own. I work with 40+ lenders, so when one of them wants more history than the guidelines require, I can take your file to one that does not. That is why a broker beats a bank on a file like this, and I do not charge a lender fee to do it.

Thinking about a new job and a new house in the same year? Before you sign the offer letter, send me the details and I will tell you how a lender is likely to read it. Agents, if you have a buyer who just switched jobs and thinks they have to wait, send them my way.

Don’t be mad at money. Talk to me before you write the offer.

Changed jobs this year and wondering where you stand? Tell me your start date and how you are paid, and I will tell you which rules apply. Ten minutes, free, zero lender fees. Call or text (512) 423-4663.

Russell Stout | Texas Mortgage Consultants, PLLC | NMLS #220896 | Company NMLS #1843758 | Equal Housing Lender. Information about Desktop Underwriter employment validation comes from Fannie Mae’s DU Version 12.1 September Update release notes and Selling Guide as of October 30, 2026 and may change. DU validation is optional and applies to conventional loans underwritten through DU. Individual lender policies, program eligibility, and terms vary. This is general information, not a loan commitment, and not legal or tax advice.

Frequently Asked Questions

Do I need two years at the same job to buy a house?

Not for most conventional loans. Fannie Mae’s Selling Guide looks for a reliable pattern of employment over the most recent two years, which means work history, not two years with one employer. It also says a shorter employment history may be considered eligible when there are positive factors, and that people who change jobs often can qualify if their income is reliable.

What changed for people who just changed jobs in September 2026?

For loan files submitted on or after the weekend of September 26, 2026, Fannie Mae’s Desktop Underwriter can validate fixed base salary income with at least 3 months at the current job and at least 12 months of total work history, counting current and prior jobs together. Before the change, DU required 12 months at the current job to validate employment income.

Does the new rule apply to hourly, bonus, or commission pay?

No. Fannie Mae says borrowers with variable base income, including people paid hourly or by the day, still need 12 months at their current job for DU to validate it. Bonus, commission, and overtime income generally still need a track record before a lender counts them toward qualifying.

Does this apply to FHA, VA, or jumbo loans?

The change is to Fannie Mae’s Desktop Underwriter validation service, which applies to conventional loans underwritten through DU. FHA, VA, jumbo, and non-QM loans follow their own agency and investor rules, and some lenders add their own requirements. Ask your loan officer which rules apply to your specific loan before assuming you have to wait.

Does a gap between jobs hurt my mortgage application?

It can. Fannie Mae’s Selling Guide says borrowers with more than one employer may not have any gap in employment greater than one month in the most recent 12 months, with an exception for seasonal work. A longer gap is not automatically a denial, but it needs to be explained and reviewed before you make an offer.

Can I change jobs while my mortgage is in process?

Often, yes. Fannie Mae allows a fully executed offer letter or employment contract to support the loan. On the standard path, the lender needs the first paystub from the new job before it delivers the loan to Fannie Mae. If the start date is after closing, Fannie Mae allows up to 90 days on a purchase of a one-unit principal residence with fixed salary income and extra reserves. Some lenders add their own rules, so talk to your loan officer before you sign the offer.