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rambachi
26 Posts |
 Posted - 07/06/2008 : 9:43:26 PM
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I have a customer who wants to buy a town home with 20% down and has credit 680+.
He just got out of school and has be working just recently at Fortune 500 company. Can he be qualified yo buy a home with 20% down with good qualifying ratios?
pleae email ram@pmgloans.us |
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slants
4274 Posts |
Posted - 07/06/2008 : 10:21:55 PM
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| Any lender should do this. Just run DU/LP. |
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peter
4612 Posts |
Posted - 07/06/2008 : 11:43:56 PM
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Slants, do you mean that with 20% down there is no need
for a minimum 2 years of employment? Or do you suggest that
the minimum employment of 2 years can be waived?
For FHA, 1 year in school studying the same field that
you went into plus 1 year of the current job in the same field
will be fine.
The 20% down will waive the seasoning and sourcing of funds,
I suppose, but the minimum 2 years employment must be met.
Peter
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slants
4274 Posts |
Posted - 07/07/2008 : 12:05:10 AM
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If his employment is in the field of his degree, don't think there is a minimum for FHA or conventional. College diploma would be required. Could very well be lender specific, but I think DU approval would be a good start:
From the FHA handbook
STABILITY OF INCOME. We do not impose a minimum length of time a borrower must have held a position of employment to be eligible. However, the lender must verify the borrower's employment for the most recent two full years. If a borrower indicates he or she was in school or in the military during any of this time, the borrower must provide evidence supporting this claim, such as college transcripts or discharge papers. The borrower also must explain any gaps in employment spanning one month or more. Allowances for seasonal employment, such as is typical in the building trades, etc., may be made if documented by the lender.
To analyze and document the probability of continued employment, lenders must examine the borrower’s past employment record, qualifications for the position, previous training and education, and the employer's confirmation of continued employment. A borrower who changes jobs frequently within the same line of work, but continues to advance in income or benefits, should be considered favorably. In this analysis, income stability takes precedence over job stability.
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peter
4612 Posts |
Posted - 07/07/2008 : 12:29:00 AM
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Thanks, Helen, and I didn't know this before. I always
thought that FHA would require a min of 1 year in school and
at least another year in the same field and conventional
always require a minimum of 2 years. If DU or LP finds
a buyer with 3 months' length of employment after college
acceptable unlesss the career prospects are so good such
as medical interns out of a med school. It's good to know
that we won't turn down the prospects so easily.
Peter |
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slants
4274 Posts |
Posted - 07/07/2008 : 01:17:34 AM
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Don't know his line of work, but if employed at a Fortune 500 company in his field of study w/ a high salary and solid job title with the likelihood of continued emplyment in the same field, it should be possible to find a lender to do it; however, they are getting more gun shy by the day. I would include a solid LOE about the borrower's future prospects w/ the DU/LP approval.
From Allregs:
Fannie Mae
X, Chapter 4: Salaried or Commissioned Borrower’s Income (07/03/00)
The lender should verify the employment of any borrower whose income is used in qualifying for the mortgage for the two years that precede the date of the mortgage application—or, if a borrower is new to the workplace, for the length of time that he or she has been employed. However, recent experience has shown that it is the stable and reliable flow of income that contributes to successful homeownership, rather than the stability of the borrower’s employment. Some individuals who change jobs frequently, but who are nevertheless able to earn consistent and predictable income, perform equally with those who have been employed by a single employer. In view of this, our underwriting guidelines emphasize the continuity of a borrower’s stable income.
Freddie Mac
37.13: Stable monthly income (06/28/04)
Stable monthly income is the Borrower's verified gross monthly income from all verifiable sources that can reasonably be expected to continue for at least the next three years. The Seller's judgment of continuance of the income must be based on required documentation. If there is no evidence to the contrary, the Seller should assume continuance of the income. For example, if the Seller is using Social Security benefits for a child who is 17 years old, it could not be assumed that the income will continue for three years because Social Security benefits typically end at age 18. However, if the Seller is including income for a Borrower who has just begun working, it would be assumed that the Borrower will continue working for at least three years. |
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kellamtom
633 Posts |
Posted - 07/07/2008 : 04:25:20 AM
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| i had a borrower who graduated from college and had an job offer letter from new employer he had to close after being on his job 1 day for fha loan |
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slants
4274 Posts |
Posted - 07/07/2008 : 10:28:51 AM
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| Only one day on job required to prove employment. Good to know. |
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rambachi
26 Posts |
Posted - 07/07/2008 : 8:07:29 PM
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| Thanks guys. That was very helpful! Does anyone no of a lender that has already closed a loan with this scenario? |
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