FHA Guidelines On College Graduates With No Employment History
This BLOG On FHA Guidelines On College Graduates With No Employment History Was UPDATED On July 9, 2017
The two main factors required when qualifying for FHA Loans are the following:
- Two years residential history
- Two years employment history
FHA Guidelines On College Graduates with no work experience state that the two year work experience is waived to full time college students. Two year employment history can be substituted with two years of full time higher education. Transcripts needs to be provided to lenders.
FHA Guidelines On College Graduates And Its Requirements
- College graduation is right around the corner and many June college graduates already had job offers in hand and are ready to start their new careers.
- Most college graduates have lucrative job offer letters.
- Many grads are planning on purchasing a new car and are thinking of getting a place of their own.
- Many graduates wonder if they qualify to buy their own home instead of renting.
- Many college graduates believe that they need at least two years of employment history in order to qualify for a home mortgage loan.
- Mortgage lenders do want to see a minimum of 2 years work experience but there are exceptions for recent college graduates with employment offer letters.
Transcripts In Lieu Of 2 Years Employment History
College graduates can qualify for FHA Loans without two year work history.
- If a recent college graduate lands a job in his or her field of study, the college years count in lieu of employment history.
- For example, if a college student has majored in Electrical Engineering and he gets a job offer at Motorola as an electrical engineer, the college graduate would qualify for a mortgage even with a short job longevity.
- Mortgage lenders count the college graduate’s major as part of employment history even though he was not making any income.
Qualifying For FHA Loans
For those college graduates who have majored in other disciplines besides the field they are in, it is on a case by case basis.
- For example, if a recent law school graduate just got hired as a police officer, the mortgage underwriter will consider the mortgage loan applicant’s years in law school in considering whether to count it as employment history.
- Even though law enforcement is in the general same field as law, a police officer’s job only requires a high school diploma and not a law degree so the applicant is not required to have a law degree.
- Taking into account that a job as an attorney and a job as a police officer are in the same field, the chances are favorable that the underwriter will approve the police officer’s law school education toward his employment history.