Do I need to wait 2 years to buy property? Advice appreciated

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Do I need to wait 2 years to buy property? Advice appreciated

Rai Ud
Member since 2021 · 3 posts · 1 vote

I'm looking to purchase a single-family home and rent out one or two rooms to help offset the mortgage. Shortly after reaching out to a mortgage broker, I remembered that I have a two-year gap in my employment/income history, and my current job is contract-based.

Ideally, I'd like to buy now rather than continue renting. I'm aiming for an FHA loan with a low down payment. I have the funds for the down payment, a few months' worth of emergency savings, a good credit score, and no existing debt. However, I'm concerned that the recent employment gap, combined with the instability of contract work, might make it difficult to qualify for a loan.

I reached out to the broker with these concerns but haven’t heard back, so I’m turning to BiggerPockets for advice.

What’s the best path forward?

Should I wait until I have a full two years of consistent income history, or is there a way I might still qualify for a favorable loan given my current circumstances?

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Ned CareyPro Member
Moderator
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
1y

@Rai Ud no I would not wait 2 years. Strat now to talk to multiple lenders to see what kind of criteria you must meet and what the terms will be. Your ability to qualify will vary from lender to lender. Also consider there are many types of lenders and loan in the market; for homeowner properties big banks, local banks, and credit unions are all potential sources. 

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  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    1y

    @Rai Ud no I would not wait 2 years. Strat now to talk to multiple lenders to see what kind of criteria you must meet and what the terms will be. Your ability to qualify will vary from lender to lender. Also consider there are many types of lenders and loan in the market; for homeowner properties big banks, local banks, and credit unions are all potential sources. 

    1Reply
  • Account Closed
    Member since 2025 · 4 posts · 0 votes
    1y

    What I would do is talk to 5-10-15 lenders. Do not limit yourself to one. See what happens?

    Also how would you rent out the rooms? To buddies or random people? Also would you do background checks and do a lease or how would you do everything logistically?

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  • Valeria Salas
    Virtual Assistant · Fort Pierce, FL · Member since 2024 · 6 posts · 4 votes
    1y

    No you shouldn't have to wait 2 years. Definitely reach out to an FHA agent and they will answer any questions that you have and guide you down the right path. Especially since your credit is in good standing and you have a down payment definitely helps so congrats on those 2 big steps. Also if you go for a certain loan with FHA believe it's named 203k(if I'm correct) say if you get a triplex to start you'd have to live in one unit for a year and rent out the others.

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  • Bryce JamisonPro Member
    Rental Property Investor · Mebane, NC · Member since 2015 · 494 posts · 439 votes
    1y

    Loan officers only get paid if they get you a loan product, so I'd advise calling several and seeing what they have to offer. If there's something out there you qualify for, they'll find it.

    If not, since you plan on using it to generate income you can reach out to DSCR loan folks. The rate will be a little higher, but if you're renting rooms and getting the property for the right price, it may still make sense.

    With a house hack, even if you're not covering the whole mortgage it can still be a huge financial boon.  

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  • Corby GoadeBusiness Member
    Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
    1y

    Some good advice above, but I'd talk to a LOT of lenders. Many of them will tell you something isn't possible if THEY don't have the product you need. There is something out there that will work for you, you'll just need to find the right broker. 

    Also- if you send someone an inquiry- like this broker from BP, and they don't reply within one business day, keep looking. 

    Best of luck!

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  • Chance House
    Lender · Member since 2025 · 15 posts · 6 votes
    1y

    Hi Rai, sounds like a reasonable plan. A DSCR lender could be the right option in this scenario, though your intention to occupy part of the property would be an issue for some. In any case, I'd encourage you to engage in an exploratory conversation with a few lenders to see what's available to you.

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  • Ken M.
    Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
    1y
    Quote from @Rai Ud:

    I'm looking to purchase a single-family home and rent out one or two rooms to help offset the mortgage. Shortly after reaching out to a mortgage broker, I remembered that I have a two-year gap in my employment/income history, and my current job is contract-based.

    Ideally, I'd like to buy now rather than continue renting. I'm aiming for an FHA loan with a low down payment. I have the funds for the down payment, a few months' worth of emergency savings, a good credit score, and no existing debt. However, I'm concerned that the recent employment gap, combined with the instability of contract work, might make it difficult to qualify for a loan.

    I reached out to the broker with these concerns but haven’t heard back, so I’m turning to BiggerPockets for advice.

    What’s the best path forward?

    Should I wait until I have a full two years of consistent income history, or is there a way I might still qualify for a favorable loan given my current circumstances?

    .
    Lenders fall into basically 5 groups

    1. Traditional lenders like banks (hardest to please)
    2. Credit Unions (More flexible)
    3. Mortgage brokers (Largest number of options)
    3. Hard Money Lenders (Will do things other lender won't, but they usually cost more)
    4. Private lenders (whatever you work out with them)

    The third one, mortgage brokers, have access to over 300 mortgage companies, who each have a large number of options, depending on goals and other qualifying criteria.

    Talk to a mortgage broker to see what they offer.

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