NMLS Uniform State Test (UST) Mortgage Practice Exam

For W-2 income to be considered eligible, lenders typically look for a consistent employment history, which is generally understood to mean that the borrower has been in the same field of work for at least two years. This two-year requirement helps demonstrate job stability and the likelihood that the borrower will maintain their income level going forward, which is critical for the assessments involved in mortgage underwriting and risk evaluation.

Being in the same field for two years provides sufficient evidence to lenders that the borrower has experience and a continuous income source, reducing potential risks associated with unpredictable job changes. This time frame is a standard practice that balances a clear indication of stability while being reasonable for the majority of borrowers who maintain employment in a consistent field.

Longer periods such as three years, five years, or more, while they may provide even more stability, exceed the typical requirement, making them unnecessary for the eligibility evaluation in most mortgage applications for W-2 income. Such extended guidelines can sometimes apply to specific scenarios or loan types but are not the standard for general eligibility.