To convert an FHA loan after leaving a job, contact your mortgage servicer immediately to request a re-qualification review. Provide updated financial documents, such as recent pay stubs, tax returns, and a letter from your new employer verifying income stability. If approved, the lender may adjust the loan terms, including interest rates or loan duration, based on your current financial standing. If re-qualification fails, explore options like loan modification programs or federal assistance for unemployed borrowers.

FHA loans require stable employment to ensure repayment capacity, as outlined in the agency’s guidelines. Data from the U.S. Department of Housing and Urban Development (HUD) shows that 18% of FHA loan defaults in 2022 were linked to employment disruptions, highlighting the importance of timely re-qualification. Lenders may extend approval if the borrower demonstrates a clear plan to regain income, such as through a new job or side gig. The FHA’s “Loss Mitigation Program” offers solutions like temporary payment deferrals or term extensions, reducing defaults by 12% in eligible cases (HUD, 2023). Proactive communication with lenders is critical, as delays in documentation can lead to loan denials or higher interest rates. This process safeguards both borrower creditworthiness and lender risk exposure.