How to house hack after switching to new, commission-based job?

6 Replies

Hey everyone - I am in the Boston area and have done a ton of planning and research to prepare to house hack in the next year. Recently, I switched jobs to scale my career and do something I'm passionate about - it is more commission based and in a different industry.

I know FHA underwriting looks for 2 years of work experience in a given industry, as well as a steady salary. Given I still have the money to house hack a 2-3 family in the Greater Boston area - how do I get around the FHA qualifications? I do not want to wait 2 years to invest.

Portfolio Lending seems like an option, but I am not sure how much you typically need to put down or what the rates in MA are for this?

What other options would allow me to qualify using my savings and commission payments? Thanks for any creativity and/or experience!

Unfortunately there's no easy way around it bc you switched an entire industry and career position you would have to start your timeline of the employment from day one. I'm sure you've evaluated your career choice and made the right move for your professional path but it's just not 'FHA friendly'.

The portfolio lending you can do is going to require 25% down and rate would be in the mid to high 3%'s. It's just probably not realistic for you do a house hack under that model unless you move to NH where prices are more amenable than MA. 

A co-signer wouldn't necessarily alleviate that problem because they still want you to account for your current income with two years of consistent figures. They also have to be occupying the property with you to consider it an owner occupied loan. 

@Nick Jasinski , if you haven't already I'd suggest speaking to a great local mortgage broker. I'm happy to refer you to who I used, who is fantastic. I am currently house hacking a 3-family on the north shore of Boston and did it with an FHA loan. There are some additional challenges specific to doing FHA for 3-4 units, such as the self-sufficiency test which can be hard to make the numbers work for in the Greater Boston area. I had to contest my rental appraisal to get over that hurdle, which is a long story. I'm an agent and very familiar with the multi-family market around Boston, happy to chat.