FHA Loan Qualifications

[Alex Waite]

Hello, 

This is my first time posting in the forums. However, I have been researching methods, listening to podcasts and reading articles here on BiggerPockets. 

I am a recent college graduate with little capital and loan repayments starting soon. My plan is to get buy a small multifamily house in the Midwest or cheaper areas in Pennsylvania (Currently I live in Richmond, VA which is hard to find a deal) and rent the other units out. From my understanding, FHA Loans require a two year employment at the same company.

So here is my question, if I land a job in the Midwest that pays well and I could pay the mortgage even without renting the other side out, I would fail to qualify for the loan. Is there any way around two year employment or do I have to keep the same job for two years and then apply for the loan? Simply asking, do I just have to wait and then begin my real estate career? Thank you in advance. 

[Zack Karp]

@Alex Waite no you don't have to wait 2 years, either for FHA or Conventional, if you get a job in the field of your education, and there was not a 6-month gap between school graduation and the new job. And if that's the case, there is no waiting period. If there was a 6-month gap, then you would need 6 months at the new job.

And you can use W-2 base salary only to qualify within the first 2 years.  No overtime, no commission, no bonus, and no 1099/self-employment.  For those, you would need a 2 year history.

Hope that helps, best of luck!