Conventional Mortgage with less than 2 years of part time work?

Question

Hello,

I am looking to buy an investment property in the Southern California, Antelope Valley area on a conventional loan for a house that would range between 60-100k and putting up to 30-35% down on the house. But, I have part time income from a job that I have been at for 1 year, because I was in school getting a degree that lead directly to my employment. I was reading that lenders do not give loans to people with part time income of less than 24 months, but I was wondering if there are any lenders that do not follow this rule? I currently make about $3300 monthly (41k annually) with student debt that is deferred until 6/2018 that will start $489/month over a 25 year repayment plan, and I have great credit and no other debt. Do you guys have any suggestions as to what I can do, or do I have to wait until the 24 months have passed?

Thanks,

Mahmoud

Albert Bui · Answer

You can use supporting documentation to substantiate the use of your income like what Shaun mentioned and if the underwriter buys it then you may be able to use it however its a slim chance and usually UW's personal call.  The 41k annual may not go very far in redondo beach, ca. The pricing there is sky high especially manhattan beach, el segundo, and up into santa monica areas.

The other thing you can do is  use a stated income program, but this only works if you have some sort of self employment, 700 min fico score, 25-30% down, and lots of cash reserves. Income in this stated program is averaged from 12-24 months of your bank statements.

Most loan programs will not let you fly with deferred payments. One of the only ones, FHA, prior used to, this is no longer so as even FHA now will hit you for your deferred student loan payments with 2% of balance or actual payment.

Shaun Weekes · Answer

They will use the last 30 days of pays tubs and a if the career you have is the same as field you can use school credits.

Example:  you go to school to be a teacher and you study for 2 years.  That 2 years can be used towards your 2 years of employment as long as it's as an educator.

Account Closed · Answer

I am actually looking to buy in the Antelope Valley area. The houses there range between 60-100k. Would the banks just use my current loan repayment rather than taking 2% of the loans?

Kelly Adcock · Answer

Yes, the actual amount will be used if avaliable, and if not then the 2% is used.

Elizabeth Colegrove · Answer

I would lender shop. When we first got started I was at my full time position for less than a year. The key to why they would count my income was they counted school. So every year you were in school counted towards the two year as long as your current position was in that field.

I found the easiest to work with was mortgage brokers versus banks. So there is some shopping around needed. Its been 4 years, but when we got started they counted my income even though i had been there for less than 4 months.