Hi everyone! I am looking to switch jobs and also buy a property with one of my parents in 2023 here in the OC. My credit is good and I think together we have a potentially good down payment . My concerns are the following, I understand that for a conventional loan they try to look at W2 stability for 2 years and i am looking to shift from a W2 health admin job to a W2 Medical Sales job. Would this be an issue especially since I would not have been employed at this new company/job for at least 2 years? How much of a deal breaker could this potentially be? Also would not making this a primary residence (because i might move from the area) hinder me greatly?P.S.- My parent would be using this as a primary residence.
Investor · Tampa, FL · Member since 2020 · 52 posts · 42 votes
3y
Hey!
It sounds to me like you're going to be in a solid position to scoop up some real estate! Few thoughts:
1. I'd recommend purchasing the property as "owner occupied." This way you'll be able to use an owner occupied loan (like FHA) which will help you come to the table with a lower down payment (especially in OC lol). Although this loan 'requires' that you live in the property, since it sounds like you'll be in the area for a few months you can call it your primary residence and then move your parents in. I've never done anything like this, but so long as you have a reason for "moving out" (like moving out of the state) the bank isn't going to care very much (if they even care at all).
2. In my experience, the banks simply want to know that you have a consistent paycheck. The whole two years of consistent income comes in when you have a 1099. For example, someone that earns most of their income as a car salesman. Since you're salaried, the bank will feel better about lending you money knowing that a paycheck comes every two weeks.
Real Estate Agent · Boise, ID · Member since 2016 · 1k+ posts · 888 votes
3y
@Camila Villarino If your parents are buying it as a primary go that route for better terms and rates and you can be a cosigner on the deed. Since you will still be a w-2 you should be ok, but best to check with the lender they may want 60 days or something at the new job.
Real Estate Agent · Southern California · Member since 2019 · 681 posts · 281 votes
3y
@Camila Villarino hey random question but is this property a planned investment like a house hack? I would partner with your lender and they could answer those questions. I have a referral in the riverside area if you would like.
Real Estate Agent · Rancho Cucamonga, CA · Member since 2018 · 82 posts · 36 votes
3y
For the most part, lenders don't really care about the industry or position of your job. As long as you have 2 years of consistent work, you should be fine!
To answer your question about owner occupancy, using this as your primary residence won't hinder you unless you use an FHA loan and plan to move within a year. If anything, using this as a primary residence will only benefit, as you can get better terms (interest rate, downpayment) on your loan.