This article covers Mortgage Guidelines After High School With No Work Experience
The ability to repay (QM) on a new housing payment is the most important factor for lenders. Mortgage lenders want to see that borrowers are able to offer their new mortgage payments. Due to this reason, lenders want to see the following:
- 2 years of past work experience and employment stability
- The past 2 years of the address of borrowers
- Likelihood of three years of employment in their current job
- Timely payments in the past 12 months with no late payments
Not all people have the same goals.
What Are The Mortgage Guidelines After High School With No Work Experience
Many want to take their time in getting a full-time job after high school and/or college graduation.
- Others want to skip college and get a full-time job right after high school and enter the job market
- Yet others have higher goals where they want to purchase a home right after high school once they get a full-time job
In this article, we will cover Mortgage Guidelines After High School With No Work Experience. Can you qualify for a home loan right after high school with no full-time work experience? What are the Mortgage Guidelines After High School With No Work Experience?
HUD Considers Full-Time Schooling The Same As Work Experience
FHA Loans has lenient mortgage guidelines after high school with no work experience.
- HUD, the parent of FHA, considers full-time schooling the same as full-time employment
- Per HUD Mortgage Guidelines After High School With No Work Experience, high school graduates can qualify for FHA Loans with no work experience in the past 24 months
So the bottom line is high school graduates can qualify for FHA Loans after high school with no work experience.
Mortgage Agency Guidelines Versus Lender Overlays
All lenders require borrowers to meet HUD 4000.1 FHA Handbook Guidelines which are FHA Guidelines by HUD.
- However, lenders can add additional lending requirements that are above and beyond the minimum HUD Agency Guidelines
- Even though per HUD Mortgage Guidelines After High School with no work experience states high school graduates can qualify for an FHA Loan with a full-time job, the lender can say no
- The particular lender may say that the borrower does meet HUD’s Agency Guidelines but they may still require two years full-time work experience as part of their lender overlays
Gustan Cho Associates is a national mortgage company with no lender overlays on FHA, VA, USDA, and Conventional Loans. We only follow minimum HUD Agency Guidelines and have no overlays on government and conventional loans.
Other Mortgage Guidelines After High School For Borrowers
There is more to it to qualify for FHA Loans after high school without any work experience. The borrower needs a full-time job with an employment offer letter. The mortgage underwriter needs to determine the job is likely to continue for the next three years. Commission jobs and 1099 wage earner employment need two-year seasoning. Part-time income, bonus income, overtime income, and/or other income does not count unless the borrower had a history of earning such income for the past two years.
For more information about this topic and/or other mortgage-related topics, please contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com. The Team at Gustan Cho Associates Mortgage Group is available 7 days a week, evenings, weekends, and holidays.
August 20, 2020 - 3 min read