Understanding Future Projected Income Rules in Georgia: FHA vs. Conventional Loans

If you’re starting a new job, receiving a scheduled raise, or transitioning careers, the difference between Conventional and FHA guidelines could determine which program fits your situation best.

Conventional Loans in Georgia

For Georgia homebuyers applying for a Conventional loan, the use of projected or higher future income before closing comes with strict limitations. Conventional guidelines only allow this scenario when:

• The property is a primary residence (single-family home only).
• The borrower is a salaried employee, not hourly or self-employed.

This means that if you’re buying a second home, investment property, or you’re paid hourly or via commissions, you may not be able to qualify based on your anticipated higher income, even if you have an official job offer or a raise letter.

FHA Loans in Georgia

On the other hand, FHA financing offers greater options for Georgia borrowers. FHA does not restrict the use of projected income to single-family primary homes or to salaried workers. This can make FHA a better fit for borrowers who are:

• Purchasing a multi-unit or condo property in Georgia.
• Working hourly, on commission, or in contract positions.
• Expecting a new job or salary increase before closing.

If you’re planning to buy or refinance a home in Georgia and want to learn which loan type fits your unique income scenario, contact our team.