Can I qualify for a FHA loan?

Question

I recently graduated college and have been working for a year and a half now. I bought a house back in May with a conventional loan, but my parents are co-borrowers because I did not have 2 years of employment. I am wondering if I can still qualify for a FHA loan? Thank you in advance!

Jason Wray · Answer

Ryan, On the surface Yes.  You have a total of (2) years of employment if you include the college and all you need to provide is the transcripts.  You would just need to apply and fill out an application with a bank/lender so your DTI - Debt to income ratios can be reviewed.

Some lenders have overlays so ask up front about your income and job seasoing.  Most Banks especially if they are Fully Delegated "Full Eagle" will not have those over lays.

Sylvia H. · Answer

Hi Ryan,

Not sure why you would want an FHA loan. The mortgage insurance is higher than conventional financing. Also rates are higher today than they were in May, so you might get sticker shock no matter what you do. If your parents want off the loan that would be a reason but I would go with conventional again rather than FHA. FHA is primarily used for people who have very little money to put down. If you have a conventional you have at least 5 percent into it. Sometimes FHA might have lower rates however the difference in the mortgage insurance premium might eat that up. Speak to your lender and see what they suggest. Good luck.

Dave Skow · Answer

@Ryan Zimmerman- if you plan to live in the  new  property - you  can use the FHA loan  for  qualifying .....if not -you cant .....do you plan to  rent out the presetn home

Adam Bartling · Answer

@Ryan Zimmerman All lenders are a little different, that's why I broker.  But you just need to apply, and hopefully a loan specialists licensed in your state will talk you through every aspect and if you do not qualify, they should make you a road map.   Not all Loans Need 2 Years Income.  Yup!

Ryan Zimmerman · Answer

Thanks @Sylvia H.

Ryan Zimmerman · Answer

@Dave Skow Yes

Ryan Zimmerman · Answer

Thank you @Jason Wray,

I appreciate the reply!

-Ryan

Can I qualify for a FHA loan?

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