Buying a home as a new Mortgage Loan Originator (Commission)

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Buying a home as a new Mortgage Loan Originator (Commission)

Grey Drummonds
Atlanta, GA · Member since 2016 · 17 posts · 9 votes

Hello BiggerPockets Community,

I am about to graduate college and pursue a career in the mortgage industry. As many of you know, the mortgage industry tends to be all commission (with salary for new loan originators for the first few months or year to get the lead funnel created). I desperately want to house hack as my first investment in real estate and have a downpayment saved. My credit is good and I'm not in debt. But, where I don't have a full-time job work history, besides part-time work, what would be the best plan of action to obtain a loan for a househack? I was thinking of either an FHA loan, rent for 6 months to a year (to build work history), or obtain owner-financing of some sort. Thank you in advance for your responses!

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  • Elise Marquette
    Lender · Frisco, TX · Member since 2019 · 546 posts · 270 votes
    5y

    Since you'll be qualifying off commission income, you'll need two years of history to show receiving commission income. Your GMI is typically averaged out over two years. Of course with seller financing all bets are off- it's all on what the seller agrees to do. 

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  • John Warren
    Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
    5y

    @Grey Drummonds I remember being in your shoes when I was getting started, and I ended up waiting almost five years to get started investing in RE. Although I wish I could have started earlier, I know now that I wasn't ready financially or mentally. If I were in your shoes, I would focus on building an incredible pipeline in your business first. Get to where you are closing tons of loans and make sure that your business is set up first, and then you can circle back to house hacking. I know this isn't the popular advice, or maybe even what you want to hear! 

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  • Grey Drummonds
    OP
    Atlanta, GA · Member since 2016 · 17 posts · 9 votes
    5y

    @Elise Marquette Thank you for the advice. I haven’t put much thought into owner financing. But, I will look into that as an option.

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  • Grey Drummonds
    OP
    Atlanta, GA · Member since 2016 · 17 posts · 9 votes
    5y

    @John Warren It’s good to hear your side, coming from a similar position as myself. It would probably be best to work on my career before I worry about investing. Thank you.

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    5y

    Another option is to find a cosigner (mom & dad?). 

    Not sure what FHA requires currently, but used to allow only 3.5% with a cosigner. You just have to be able to qualify with all the debt of everyone on the loan.

    [email protected]248-209-6824
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  • Christian Hall
    Lender · Grand Haven, MI · Member since 2016 · 43 posts · 6 votes
    5y

    Hi @Grey Drummonds When I started my career in the mortgage industry I had already closed on a few of my own buy-and-hold deals so I knew a few loan officers. I called around and had conversations about different openings in the industry. I was able to work with a smaller lender who set me up with hourly base pay and bonus structure for assisting other LOs while I learned the biz, got licensed, and developed my own lead funnels. If you are interested and able to work out something like this, your income may be able to qualify you for a purchase (depending on the market/price). Also, most people don't like the idea of a co-signer, but you can always remove them later once your income has improved. There are definitely creative ways to get around these obstacles. That's what it's all about. I wish you the best!

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