Mortgage  Question?
Do You Need to Live in State Before Apply For Mortgage?

Are there regulations that require you to live in a state for a certain period of time before you apply for mortgage? My relative moved to a new state and his lender said he had to wait before he could apply for a mortgage.

Harry Jensen, Trusted Mortgage Expert with 45+ Years of Experience
, Trusted Mortgage Expert with 45+ Years of Experience

I am not aware of any state regulations that require you to reside in a state for a minimum period of time before you apply for a mortgage. The guideline you referenced for your relative may have been a lender-specific guideline as opposed to a state regulation. Borrowers are typically required to provide two years of residence history when you apply for a loan and if you have not paid for rent or a mortgage for an extended period of time (such as if you lived with a relative) then some lenders may want to see a track record of making monthly housing payments before you can qualify for a mortgage, although this is relatively uncommon. Additionally, this residence history requirement is borrower-specific and not a state regulation.

The issue that lenders typically focus on when you move from one state to another is a borrower's employment history. Lenders typically require that borrowers have two years of continuous employment history to qualify for a mortgage. When borrowers move to a new state, sometime that causes a break in employment that can be an issue when you apply for a mortgage. As long as there is no break in your employment and your job does not have a probationary period then you should be good to go for a mortgage. For example, in your case, transferring cities or states but remaining with the same employer (or even in the same field of work), with no extended break in employment, is an ideal scenario if you move to a new state and apply for a mortgage. We provide a comprehensive overview of borrower qualification guidelines including your debt-to-income ratio, credit score and employment history on FREEandCLEAR.

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About the author

Harry Jensen, Mortgage Expert

Harry is the co-founder of FREEandCLEAR. He is a mortgage expert with over 45 years of industry experience. Over his career, Harry has closed thousands of loans for satisfied borrowers and now offers his advice and insights on FREEandCLEAR. More about Harry

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