Any lenders that don’t require 2yr work history?

Question

Anyone know of any lenders that don’t require 2yrs of work history? I’ve considered an FHA but that’s very limiting being I’d have to live there. I have a job but I know I can get into REI much faster with the right connections.

Scott D Burrows · Answer

@Chris Mason

Did not know that.. great info.

@Gabriel Graham

You could try to get your start in fix and flipping. Hard money lenders don't have to adhere to Fannie Mae guidelines because they're using private money.

However, while you can get hard money it may not always be advised. High interest rates and high fees make it mostly prohibitive and I know that Chris does not recommend any.  A strategy I would go with if I was going to get into flipping right now would be to target houses that are 70% ARV, secure hard money financing and flip homes, until I built enough of a cushion to start buying and holding.

Also, highly recommend trying to "house-hack" a fourplex if possible, if you can get approved for FHA financing. @Diana Muresan could help you with your questions, I have used her before and recommend her to investors looking to utilize conventional financing for investments.

At the time being, my recommendation is to save money, determine your strategy and call EVERY local lender in your phone book. EVERY one, don't be discouraged when they only tell you what you can't do, just keep asking and keep calling until you find the lender that will give you a shot.

Another option: Find a house that is cheap and the owner is will do seller-financing. Typically, if you come in with earnest money and a good offer for money down (typically 20-50%) they will listen to your offer and you may be able to snag your first deal this way (I have used a personal loan to secure deals ( I recommend Lighstream- Received a $30K loan @ 11% at a 3YR term- non-amortized).

Anyways, good luck and feel free to reach out.

Good Luck,

Scott

Chris Mason · Answer

It's probably more relevant to the SF Bay Area than most places. We put a lot of new tech workers into homeownership 5 and 9 months out of college, less than a year on that new six figure job at a tech startup.

Chris Mason · Answer

The requirement is actually a little more nuanced than "2yrs of work history."

For example suppose you recently passed a 2 year auto mechanic certification at your local trade school or community college, and are now a full time W2 salaried mechanic. In that case the certification program can be "counted" as part of the two years (a good thing), but your income will not be averaged with that time you were a student (a good thing, since most students make nada).

New doctors and lawyers take advantage of this all the time, but there is no restriction to be found in the guidelines that says ONLY white collar folks can use it, which is why I used a car mechanic in that example.

Lots of other nuance too. Why don't you describe your full scenario?

Gabriel Graham · Answer

@Chris Mason thanks for your response. I’m 21 and have been back and forth between Utah and MD for medical treatment. I’ve had jobs here and there but haven’t been able to hold one due to the constant moving. Don’t get me wrong, wherever I’m at, I’m working and have stable income but in a banks eyes it doesn’t look too stable. Medical treatment is coming to an end within the next couple of months and I’m looking to get a job that’ll last but until the treatment is over I’m itching to get started in REI.

Any lenders that don’t require 2yr work history?

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