Financing First Deal (employment history)

4 Replies

Hope this is in the right forum.

I will be travelling for an extended period of time after which I will focus on my first deal. I have a concern with financing this deal.

Let's say I have a solid employment history of 5+ years, take 6 months to travel, then work for another year at which time I intend on purchasing a property.

What issues can I expect to run into when trying to obtain financing? Will lenders want me to work another year to show 2 years of employment?

I found this from fha.com (private corp, I can't attest to their credibility).

"When it comes to gaps in the work history, FHA rules require an explanation, but significant work history (a year or more) since the date of the unemployment should be enough to offset the gap presented in this scenario.


As with all aspects of FHA home loan applications, the borrowers specific circumstances play a big part of this--what is considered a problem for some borrowers may not be an issue for others depending on other factors such as credit history, the nature of the employment, and the reasons for gaps in the employment record.

Also, the lender must verify current income and employment to judge whether current work is stable and "likely to continue". Simply having a new job or a recent change in employers is not enough to disqualify you from an FHA guaranteed loan. "

So, I may not have as big of an issue as I anticipated.

Does anyone have any other thoughts or input in this scenario?

If you are Salary that is a plus, i was financed after a few months of employment becuase i was on salary.

Credit scores are also important.

It will depend on the loan officer and lender.

Also depends on what you're trying to financing with. I would suggest hard money, or private money if possible. This will get you into your first deal pretty quick. Mostly because on a conventional loan, you'll have to do a few things before you can secure a good deal. Chances are if it's a good deal it won't be there long enough to be approved through a conventional loan, much less FHA loan.

Good luck!

Thanks for the feedback. Its good to know realistically what all my options are during that period. I will do some more research into private/hard money. My research so far indicates that could be expensive.

I should mention that I'm interested in a 2-4 unit rental as my first purchase (where I occupy 1 unit).

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