Still soaking up knowledge here. I have a kind of specific question about conventional loans.
I have been networking with local real estate investors in my area and actually was blessed to have the opportunity or a shot at a job in the field. However, I had to put that thought on hold - because I haven't secured my own housing let alone any deals and the general idea is that you need to have 2+ years in the same job/field in order to be approved for conventional financing (I would like my first deal to be conventional so that I can benefit from the low % down).
So here's some questions:
If I stayed at my current job 1 day of the week and tried to take on this new venture, would I still be eligible although majority of my income would come from the new job?
I'm a student and have been for several years. I'm assuming these loan officers aren't going to dig in what career path I'm taking - could this be used to my advantage in this case?
Or should I potentially let this stuff just go by, hoping that by the time I'm ready that it will still be on the table?
Just feeling a little bit stuck.
You certainly can't get the no doc loan I got for my first house pre crash but there is always a way. Try 20 banks, find a partner, find a co signer, do whatever you need to, except wait two years.
@Amber H. I'm just getting to the end of a loan funding process (I hope), and let me tell you, they will get into every aspect of your life. The amount of documentation they asked me to provide was mind boggling. And just when I think I'm done, they ask for more. There has been 3 times now when I thought I was done, the loan broker told me I was done, then they come back with additional requests. In the last hour I provided what I think is the last document, but who knows?? It's been one of the most infuriating processes I've ever been through. I'm paying all cash on the next one. This was Not a conventional loan, so maybe that process is easier?
Most banks are going to do a verification of employment before you close. So whatever your work situation is, tell the lender up front and if you qualify, the hours won't matter. They will verify though
Being a student doesn't' matter much, they want to know you can pay for the unit. They likely won't ask you too much about school other than the financials.
Conventional financing means 20% down. There are other types of loans that require less injection, but most require you to move in and live there to qualify.
You don't need 2 years in the same field to qualify for a mortgage unless you're 1099.
@Alexander Felice That's the problem. I make the switch to this job that can teach me everything, I won't qualify for a loan for myself because I don't meet the two year requirement. My question about being a student was mostly because I read somewhere that they may count my "student" time into the equation - let's say if I just got my first job w/ my degree. And oops! I actually meant FHA. Sorry. I was thinking more in the 3.5-4% or whatever the going rate is right now. Also.... I currently am 1099. I'm pretty sure I would be switching to W2 in this real estate venture but we never got to that part of the conversation.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing