Loan Approval Without Employment

6 Replies

I am working on my first deal and I have started working on getting a loan pre-approval. My concern is that I am currently a college student and my employment is based on co-op cycles within the college so I cannot provide 2 years of steady employment. I was planning to utilize an FHA loan to take advantage of the low down payment but I have hear the are more strict with the employment verification.

Has anyone had any experience getting loan approval / pre-approval with a similar employment situation? If so I would love to hear about your experience and what lender you used!

DTI would be the variable this hits and different lenders have different policies. I would visit a non-traditional mortgage originator to see what lenders he or she works with and what products they support without a DTI.

Credit score will have to be > 580 and cash position will have to be enough to cover the difference between 96.5% of appraised value and sale price, plus closing costs.

@Ronald Allen Barney My credit score is currently in the mid 700s and my cash position should be good to cover the down payment and closing costs on the property I am looking at. I am not familiar with non-traditional mortgage originators, do you have any recommendations on where to begin looking for one?

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@Jacob Willett with 3.5% down it's going to have to be owner occupied for at least a year so your going to need income to cover those payments. Plus with lower down payment you'll have to pay MIP on top of a higher interest rate in your situation. If you really want to get your feet wet I would say try to find an multi family that you can live in one of the units and have it pay for itself if not cash flow a little. Be patient on finding the right deal that the numbers will work. As far as lenders... try NEXA. They have a big portfolio of lenders and more than 4000 programs. One of them might just work for your situation. But be patient and don't buy something that doesn't look good in person or on paper

Originally posted by @Jacob Willett :

I am working on my first deal and I have started working on getting a loan pre-approval. My concern is that I am currently a college student and my employment is based on co-op cycles within the college so I cannot provide 2 years of steady employment. I was planning to utilize an FHA loan to take advantage of the low down payment but I have hear the are more strict with the employment verification.

Has anyone had any experience getting loan approval / pre-approval with a similar employment situation? If so I would love to hear about your experience and what lender you used!

Unfortunately, you won't qualify without steady employment.