Conventional Loan without Full 2 Year Work History?

Question

Hello everyone. Are there any lenders here that can finance a conventional loan without a full 2 years of work history? Full work history with no employment gaps since October 2023. Currently making $80000 salary. Lowest credit score of 713 and other 2 scores both 760+. Would really like to go conventional as a DSCR with no PPP has a much higher interest rate. I know we can start with DSCR and refinance, but then you're paying closing/origination costs twice. Anybody able to help?

Ted V. · Answer

Hi Andrew, not all lenders have the same rules—some are more flexible than others. For example, we can work with 12-24 months of self-employment if you meet certain conditions. You’d need a full year of business tax returns (not just part of a year) and ideally a prior W-2 in a similar field with comparable income. Lenders mainly care about stability—if your work history and earnings show consistency, you could have a solid shot at going conventional.

Austin Clarence · Answer

Yessir that is fine. Lenders will ask what you were doing before.  Were you in school or training, or out for medical reasons. Can you go back years before and find previous work history? There are a lot of ways to meet the requirement

Emmanuel Blakemore · Answer

Hi Andrew, there are few ways to get this financed for you with a 1 year work history, but of course the devil is in the details. We will need a little more clarity on what you did prior to 2023. Also, we have very competitive non-qm options that will allow you to avoid the overlays given when going with a GSE loan while also offering comparable rates. Feel free to reach out!

Raymond J. Rodrigues · Answer

@Andrew Self lack of two years of employment history is not a deal breaker depending on what you were doing prior to starting your salary job. What were you doing from February 2023- October? Which state are you looking to make a purchase in?

Joel Weiser · Answer

Hi Andrew,

- If you were in school before Oct 2023 we can use it for employment history

- If you were employed for 2 years in the past this should also work (with explaining the gap)

- We can do a Non-QM one year employment full doc with no PPP that is better priced than DSCR (but not as good as conventional)

Hope it helps

Derek Brickley · Answer

Hey Andrew! Not sure of your situation exactly, but we've definitely made that case before and helped investors with a conventional loan.  Feel free to reach out if it might help to go through how we were able to do that!

Eric Veronica · Answer

HI Andrew,

There can be some flexibility around the 2 year history depending on the situation.  What were you doing before October 2023?

Andrew Self · Answer

Personal name. Will soon set up LLC to transfer the property to

Jaycee Greene · Answer

Hey @Andrew Self Are you going to buy a property through an LLC or your personal name?

Conventional Loan without Full 2 Year Work History?

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