How to Write a Relocation Letter for a Mortgage

The process of getting a mortgage can be intimidating, especially if it is due to a relocation for work. Relocation loans can differ slightly from standard mortgage loans, as additional requirements exist. 

To help make the process of obtaining a loan easier for your employee, it is recommended to write a relocation letter for a mortgage. Many companies often include a relocation mortgage in their relocation package for their employees.

A letter of employment for mortgage can help ensure your employee gets their loan in a sufficient amount of time during their relocation for work. The letter will enable the mortgage lender to trust that your employee is responsible enough to pay their loan by including information about their income and how long your company has employed them.

How to Put Together a Relocation Letter of Employment for Mortgage

Obtaining a mortgage while going through the moving process can help to have a relocation letter of employment. A homebuyer must receive an accepted offer letter signed by your company or the head of human resources. 

This letter will include information regarding the employee’s income to help them qualify for their mortgage in a time-efficient manner. The relocation letter for a mortgage will help prove your employee’s income to the mortgage lender, which will make the lender more likely to approve the mortgage application. 

Mortgage lenders use specific criteria to determine whether or not your employee is considered to be high risk or safe, like checking your employee’s tax documents, all income, and the stability of their employment over the past two years. 

Your employee’s relocation letter of employment should include how many hours they work, their income, tax information, their job title or position, and how long they have been employed with your company.

Important Considerations When Getting a Mortgage in a Different State

If your employee is relocating to a different state, there are some important considerations to keep in mind. Some mortgage companies will only allow your employee to close on their mortgage after they have started their new job, but other mortgage lenders are different. 

Fannie Mae, for example, allows its homebuyers to close on their relocation mortgage before starting their new job. However, there are conditions to keep in mind:

  • The homebuyer is qualified using only salary or hourly based income
  • The home must be a principal primary residence
  • The mortgage can only be obtained for one unit of properties
  • Your employee’s new position at their job needs to be within 90 days of the closing date
  • Employees cannot be employed by family members or anyone involved with the mortgage process
  • The mortgage is only allied in purchase transactions

Suppose your company requires the employee to obtain a drug screening or background check before relocating or changing positions. In that case, that will need to be completed before the employee closes on their loan. An underwriter will verify with your company that the screenings have been completed and satisfied so that the mortgage process can proceed. 

Final Thoughts

A relocation letter for a mortgage will help your employees get on the right track to obtaining a mortgage for their job relocation. If your company is looking for assistance with relocation, ARC Relocation can help!  Contact us today for a free quote or to set up a free consultation call.