I greatly appreciate any help;
I just landed a much better paying job and I will start in couple of days. I've also saved up some money and I'd like to purchase a multi-family house near Los Angeles area (3 or 4 unit family house under 420K would be ideal).
I graduated from college on June 2014, I have some employment gaps in the past couple of years and they are as follow:
. Didn't work from 2011 to March 2014 due to attending college full time
. From June 2014 to now, there might be in total of 5 months of unemployment
I have an excellent credit score and I believe I can put down more than 3.5%.
My question is: Do I still qualify for FHA or Conventional Loan or I need to wait? If so, how much more do I need to wait??
P.s, I'd like to thank anyone who can shed some light in here! Seriously thank you!!
They usually want to see at least 2 years of consistent work history. But I believe you should be good if you have excellent credit. Just make sure you work with a good broker to help you. The only thing you have to make sure is your debt to income ratio is decent.
Thanks Ricardo, so can I technically purchase a place in the next 6 months?
Are you working in the field that you attended college for? The time that you took off, were you looking for a job that pertained to your degree? You may have an argument if this is the case...... Your full time schooling counts as your work history if it is in same field as your current job. You would have to explain all the details in writing to an underwriter of why you weren't working for that period of time and how you plan to continue with this full time job. You may be able to get approved, but your file needs to be submitted to underwriting directly for a pre-approval.
Straight from the horses mouth...
Newly employed applicant:
An applicant with less than a consecutive 2-year history of employment must provide documentation showing a prior immediate history of school attendance or enrollment in a training program.
Re-Entering the Workforce:
An applicant re-entering the workforce must be in current job for a minimum of 6 months and evidence a 2-year work history prior to the absence.
It sounds to me like you are a "newly employed applicant", if so, you should be fine.
Different mortgage brokers or banks have different criteria to approve a person's mortgage. Usually a permanent job is one of the major criteria for qualifying for a mortgage. Any existing loan can be a negative and so is a poor credit rating. You can go through this blog about mortgage qualifier to know more, it lists almost all the required factors.
If you are working for a long time and with a good credit score you will get mortgage approved pretty quickly.I would suggest you to consult a mortgage broker to get the best rates. If you want to find how much mortgage can you afford,you can use tools like this http://www.canadamortgagedirect.com/tools-resources/calculators/mortgage-affordability-calculator/. You can enter your monthly income and expenses that may come when you become a home owner like the taxes and find out how much you can afford.
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