FHA Guidelines On College Graduates With No Employment History

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FHA Guidelines On College Graduates With No Employment History

This BLOG On FHA Guidelines On College Graduates With No Employment History Was UPDATED On October 31st, 2018

what are FHA Guidelines On College Graduates With No Employment History

The two main factors required when qualifying for FHA Loans are the following:

  1. Two years residential history
  2. 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

What are 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

what are 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, here is a case scenario:
    • if a college student has majored in Electrical Engineering
    • he gets a job offer at Motorola as an electrical engineer
    • college graduate would qualify for a mortgage even with a short job longevity
  • Lenders count the college graduate’s major as part of employment history even though he was not making any income

Qualifying For FHA Loans

How 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, here is a case scenario:
    • recent law school graduate just got hired as a police officer
    • 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
  • 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

Related> FHA and First Time Home Buyers

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