Getting FHA financing without 40 hour/week job?

1 Reply

Had a quick question on FHA loans. Trying to start an investment business with a partner and we do have enough capital that we don't need to rely on an investor for the first few deals we do (we're planning on flipping and along the way pick up a few multi families to buy and hold). However we're also both planning on leaving our 40 hour/week jobs to pursue this.

Is it possible to get an FHA loan while not having a 40 hour/week job?

It wasn't our initial thought to pick up a multi family right from the get go but I'm assuming it would be much easier to obtain an FHA/203k loan while still holding a steady job. And if we could use it toward a multi family so most of the mortgage is paid by tenants while giving us a 'free' place to live that would seem to be ideal. Just trying to figure out the best way to leverage our capital while still having the most options available.

Hi @Michael Cavicchi ,

Part time and seasonal work is treated as self employment. Two year average of that part time or seasonal work will be used. 

You need to ease into it if you want to qualify for additional mortgages without a day job. The "test" I apply when I think a REI is close to not needing the day job to qualify, is that I'll try to squeeze their next mortgage through (and it's usually a squeaker!) without including paystubs in what I submit to underwriting, claim $0.00 in day job income, and just use the rental income to qualify them.

  • If it squeaks through, I get to make a good news phone call to the REI about that day job of theirs, and how they can stop going if they want.
  • If it doesn't squeak through, I submit the paystubs, try again next time, and typically the REI doesn't know I tried.
Chris Mason, Lender in CA (#1220177) and California (#1220177)
415-846-9211

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