Can Schooling Count Towards My Two-Year Work History for a Home Loan?

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Can Schooling Count Towards My Two-Year Work History for a Home Loan?

Mortgage rates are historically low right now. Unfortunately, many full-time students might think that they have to wait until they have a job for two years to qualify for a home loan. That is because there are typically mandatory two-year employment history mortgage guidelines required by most lenders.

These are the basics for the two-year employment history mortgage guidelines:

Mortgage Borrowers do not have to have a two- year employment history with the same job to qualify for a mortgage

  • Borrowers can also have gaps in employment as well as jobs in different lines of work
  • However, all borrowers must have an overall two- year employment history

Here is an example scenario:

Let’s say you were employed as a painter from January 2016 until February 2017, and then you were laid off for a few months. Then, in June 2017, you took a class to become a home inspector and started a new job as a home inspector in August of 2017. You may be able to qualify for the two-year employment history requirement even though you had a gap in employment and changed your work line. What lenders are looking for is a two-year overall employment history and not two straight years of employment with the same employer or career.

Exceptions to The Two-Year Employment History

There is an exception for not having a two-year employment history for full-time students. Homebuyers who have been enrolled in schools, such as a technical school, college, graduate school, or a professional trade school, may be able to use their full-time period in school instead of employment history. They may be able to use your two-year history of college transcripts as documentation, and the time you were in school can be counted towards your work history qualification.

For example, say a high school graduate goes to college for four years and then goes to medical school for another four years. The student graduates from medical school and immediately gets a new job making $100,000 per year. This medical student may qualify for a home mortgage if he or she can provide an offer employment letter and 30 days of paycheck stubs. In this case, the prior two years as a full-time medical school student will be counted towards his or her two-year employment history requirement.

As you can see, there are often exceptions to the requirements for a home loan. The best source for any information about qualifying for a home loan is a trusted mortgage lender. Primary Residential Mortgage has a fantastic reputation for being helpful and working hard to get our clients qualified for a loan despite common challenges. Give us a chance to work hard for you and get you into the home of your dreams. What are you waiting for? Contact us today!

 

Note: Opinions expressed are solely my own and do not express the views of my employer