College Education Versus Work Experience Mortgage Guidelines
This Article Is About College Education Versus Work Experience Mortgage Guidelines
Why Real Word Experience Beats Book Smarts: College Education Versus Work Experience
As I take this time to break away from the housing and mortgage experiences in my life, let me jump into another topic that I feel strongly about:
- That is my opinion that college really doesn’t prepare you that well for the real world
- Yes, you heard that correctly
- I am a firm believer that my $60,000 of student loans was really for nothing
- Now I am not going to say that I didn’t learn anything from my college experience and my B.S. in Accounting
- But there is only a finite amount of information that a book can teach you
- After that, it is all on you to be a sponge in the real world and actually figure out what is going on
College Education Versus Work Experience In Getting First Job
This is exactly what happened to me as I landed my first job out of college as a Staff Accountant for a mid-size manufacturing company.
- I went through school learning about Income Statements, Balance Sheets, Cash Flows, etc and how everything is just so easy to record and understand
- This couldn’t be farther from the case
- I was thrown into the fire with financials that were not in proper order
- Had to familiarize myself with journal entries and reconciliations that were out of balance and to the wrong accounts
- Was confronted with an inventory system that had over 5,000 components for all the various items that this company made
- There is definitely not a class in college for “My Company is Messed Up 101” the last time I checked
- Almost immediately upon starting, I had to check my education at the door, roll up my sleeves, and just jump right into using my common sense to get these items straightened out
- I also had to critically think and problem solve to make sure these items didn’t happen again in the future
College Education Versus Work Experience And What They Do Not Teach You In College
Another case scenario at this same company happened about 6 months into my tenure there where a supervisor in the accounts payable department up:
- He quit leaving the company in a bind
- What happened next surprised me and that I was deemed the new AP Supervisor as well as my staff accountant duties
- All of a sudden at 22 years old I was in charge of 6 employees and was in charge of hiring, firing, and reviews for the department
- The biggest challenge I had to overcome was getting the respect of these 6 individuals who were all order than me
- In their eyes I was just a “kid” and they didn’t take me seriously for the first month or two
- But soon everyone came around as I lead this team to be the most productive they have ever been
- I implemented efficient practices and made a few staffing changes to obtain the highest output possible
- This was just 1 example of where my college text books couldn’t tell me how to handle being a manager at just 22 years old
My Conclusion On The Value Of College Education Versus Work Experience
In closing, yes college has its place in our society, I just don’t think that the college makes the individual.
- I didn’t get a flashy degree from a big name school
- But I am landing positions where I am getting hired over other candidates
- Just because you got an A in accounting doesn’t mean you will be the best accountant
- Quite frankly, without challenging real-world experience, you are actually doing yourself a disservice
- The best training and learning is while on the job
- Real world experiences are ones that will stay with you forever
- I couldn’t tell you what my Accounting 201 textbook says
- But I know I can work for circles around a lot of accountants I have seen in my field
- In my opinion, the experience is EVERYTHING!
Mortgage Guidelines For Recent Graduates With No Work Experience
Mortgage Agency Guidelines allow for recent school graduates to qualify for home loans with no work experience.
- There are government loans and conventional loans first time home buyers can qualify for
- On this blog, we will use FHA Loans due to being the most popular loan programs for recent school graduates. HUD is the parent of FHA
- FHA is not a lender and does not originate, fund, nor service FHA Loans
- FHA role is to insure FHA Loans originated and funded by private lenders
- In order for FHA to insure lenders against the borrower defaulting on their FHA Loans is that every borrower needs to follow HUD 4000.1 FHA Handbook Guidelines
FHA treats full time schooling the same as work experience.
- Under HUD Guidelines, borrowers need a two-year work history to qualify for FHA Home Loans
- However, if the borrower never had a job and was a full-time student, that can be used in lieu of two-year employment history
Can High School Graduates Qualify For FHA Loans?
Recent high school graduates with full-time jobs can qualify for FHA Loans under HUD Guidelines.
- The years in high school is equivalent as full time employment
- We do not require two-year full-time employment if the borrower has been full-time students for the past two years
- Please contact us at Gustan Cho Associates with any questions on this matter at 630-659-7644 or text us for faster response or email us at firstname.lastname@example.org
About The Author Of College Education Versus Work Experience
Michael Gracz is the author of this blog on College Education Versus Work Experience. Michael Gracz is the national sales manager of Gustan Cho Associates. Mike Gracz is a contributing editor for Gustan Cho Associates Commercial And Residential Mortgage Information Center and an accountant by training and trade. Mike is also a veteran senior licensed mortgage loan originator at Gustan Cho Associates and a team leader. Michael Gracz’s invaluable experience in all areas of accounting and expertise in mortgage lending and compliance has added his responsibility to be the national sales manager with Gustan Cho Associates where he is in charge of running training programs for loan officers and new loan officers in income tax analysis for self-employed mortgage loan borrowers. Michael Gracz will continue to write blogs on his personal and professional life experiences in the days and weeks to come. Stay tuned!!!
June 7, 2019 - 5 min read