New Job vs First-time Homebuyer Loans

Seattle, Washington
First-Time Home Buyer
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New Job vs First-time Homebuyer Loans

Tyler Ridings
Member since 2022 · 2 posts · 4 votes

Will switching to a new career impact me in a negative way if I want to apply for a first-time mortgage the same year? I want to buy either a duplex, triplex, or quadplex. It does not have to be my primary residence. I am currently in a Marketing Role and want to transfer my career to the Tech industry as a Salesforce Administrator.

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Michael HaasBusiness Member
Real Estate Agent · Redmond, 🌧️ Seattle Investor-Agent | 🤑 Helped 400+ Clients Invest in Real Estate | 🏘️ Owns 23 WA Rentals & Airbnbs | 🏗️ Built 5 DADU's | 📈 You Can Do It Too · Member since 2016 · 724 posts · 3k+ votes
3y

@Tyler Ridings exciting stuff with the job change and embarking as a new investor. As @Matthew Kwan mentioned, the FHA self sufficiency test is a tough hurdle in our region, especially with today's higher interest rates. In and around Seattle Single family homes with accessory dwelling units tend to have the best HouseHack ROI, followed by large single family homes rented by the room and true duplexes. I'd love to dive a little deeper into the househacking strategy side when you're ready for it - just shoot me a DM if you'd like to chat more. Cheers!

[email protected]408-439-7873
HouseHack Seattle | Michael Haas & Team572 Reviews
WebsiteView Page
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  • Lawrence Potts
    Real Estate Agent · Member since 2018 · 459 posts · 414 votes
    3y

    Good question! If it’s an increase or the same pay, I don’t think you’ll have a problem. If you were to start your own business doing tech after leaving your marketing job, you may find yourself waiting a few years to be financeable again. @Grant Schroeder can chime in on this and provide a solid answer as well. But definitely a good question to be asking yourself if you plan on changing careers.

    1Reply
  • Dave Skow
    Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
    3y

    @Tyler Ridings  thanks   1)  try to avoid  or minimize  any job gaps    2)  the  job  change is likely OK  as long as  you are only using  the  base   salary  or wage for   qualifying    3)  ideally  a letter of  explanation  will be  needed   4) the loan cant  close  until after your  new  job has started ...definitely  get  pre approved  well before you  begin looking to  buy 

    1Reply
  • Emily Hazard
    Member since 2022 · 28 posts · 15 votes
    3y

    Hey Tyler, which area are you interested in?

    0Reply
  • Tyler Ridings
    OP
    Member since 2022 · 2 posts · 4 votes
    3y

    Hello Emily,

    I am looking in the Greater Seattle Area for my first investment Property. I reside in Auburn for now, but am open to finding deals on the outskirts on the Greater Seattle Area. 

    0Reply
  • Eric Yu
    Real Estate Agent · Seattle, WA · Member since 2019 · 243 posts · 246 votes
    3y
    Quote from @Tyler Ridings:

    Will switching to a new career impact me in a negative way if I want to apply for a first-time mortgage the same year? I want to buy either a duplex, triplex, or quadplex. It does not have to be my primary residence. I am currently in a Marketing Role and want to transfer my career to the Tech industry as a Salesforce Administrator.


     Hey Tyler! Easiest to just check in with a lender. I have a few I can refer you to that service WA. 


    Are you trying to buy a purely investment property? Or start off with a house hack? 

    1Reply
  • Sherief Elbassuoni
    Realtor · Bellevue, WA · Member since 2019 · 882 posts · 1k+ votes
    3y

    @Tyler Ridings, if you are W-2, we can use your income. If your new job is similar to your previous job, and you have 1-year tax return, some lenders will allow 1 year (instead of 2 years), but a letter of explanation may be needed. 

    3Reply
  • Nathan Harden
    Real Estate Agent · Puyallup, WA · Member since 2022 · 551 posts · 379 votes
    3y

    The biggest challenge that you may run into is that it sounds like you're going from a stable W-2 job to a sales position. Most sales positions are heavily incentivized with commission based salaries. If this is the case, then problems will arise because you do not have 2 years of commission based income. Of course, there are other types of loans such as bank statement loans so I'm not saying it's impossible, just may be difficult. 

    0Reply
  • Dennis Nguyen
    Real Estate Agent · Seattle, WA · Member since 2017 · 150 posts · 80 votes
    3y

    Hey Tyler! Adding to what the others have mentioned above, it really depends on your new job role, how you get paid, and what type of property you plan on purchasing. For example, going from a consistent W2 Salary position to a commission based sales position will impact a few things. Always better to talk to a lender because they will be able to give you a clear answer based on these factors. 

    0Reply
  • Matthew Kwan
    Lender · Seattle, WA · Member since 2022 · 482 posts · 768 votes
    3y

    HI, 

    If you are W2 and switched to a new career, it doesn't matter as long you can prove you have 2+ years of job employment history. Even if you were a student, that still consider as a full time job in the lending industry. Primary would be ideal if you are currently renting cause the down payment for primary is usually a lot lower then an investment property. Maybe even consider FHA if multifamily is the route for you with 3.5% but you will need to past the self sufficient test if you are acquiring a triplex/quadplex. The SS test is basically 75% of the gross market rent has to exceed your PITIA.

    @Albert Bui @Carlos Valencia

    3Reply
  • Michael HaasBusiness Member
    Real Estate Agent · Redmond, 🌧️ Seattle Investor-Agent | 🤑 Helped 400+ Clients Invest in Real Estate | 🏘️ Owns 23 WA Rentals & Airbnbs | 🏗️ Built 5 DADU's | 📈 You Can Do It Too · Member since 2016 · 724 posts · 3k+ votes
    3y

    @Tyler Ridings exciting stuff with the job change and embarking as a new investor. As @Matthew Kwan mentioned, the FHA self sufficiency test is a tough hurdle in our region, especially with today's higher interest rates. In and around Seattle Single family homes with accessory dwelling units tend to have the best HouseHack ROI, followed by large single family homes rented by the room and true duplexes. I'd love to dive a little deeper into the househacking strategy side when you're ready for it - just shoot me a DM if you'd like to chat more. Cheers!

    [email protected]408-439-7873
    HouseHack Seattle | Michael Haas & Team572 Reviews
    WebsiteView Page
    5Reply
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