Can you get loans w/out 2 yrs of employment at the same company?

Question

Hello,Excited to get in the game, but not excited to wait two years to start! After reading a few of the Bigger Pockets books and speaking with real estate investors it seems like the general rule of thumb is that you are required to have at least 2 years of employment at the same company to get most loans, including an FHA loan. I worked for 2 1/2 years at the same company with a steady salary and moved on to a new company for a significantly higher salary. After working there for only 4 months I realised the company was a disaster so I quit and decided to take the year off to travel. The people I met on my travels inspired me to get into real estate so I could have the freedom to experience more amazing adventures in the future.For the last 3 months I have been working at a new job in the same industry as before with an even higher salary and in a lead role. I am a first time home buyer and am looking to house hack buying a multifamily unit and living in one unit. Is there any way I could get an FHA loan without having to wait for 2 years working at the same company?I have an:800 credit scoreEnough cash for the 3.5% down payment and closing costs$130K salaryNo debtThank you so much for any insights or suggestions! I really do appreciate it!Cheers,Derek

Caleb Heimsoth · Answer

Yes it’s more the same field then same job. I had 3 different jobs in 2017 and even switched jobs during one of my loan applications, had no issues at all. I also haven’t been working full time yet as I graduated last year from school, but since I was studying the same field I now work in, they count this and it’s also been of no issue

Stephanie P. · Answer

@Derek SchwarzThe short answer is you don't need two years at the same job. A month of paystubs and a W2 will work with a good explanation. With your compensating factors like a high score, great salary in the same industry, you should have no problem; certainly not with FHA. You may want to check out other alternatives that may get you more savings in mortgage insurance. Freddie Mac's Home Possible could be a better way to go. Freddie Mac Home PossibleIf you need a good mortgage guy in your area, I could refer you.Let me knowStephanie

Harjeet Bhatti · Answer

You need 6 month employment history because of gap in employment.

Keyonte Summers · Answer

Yes I have personally got two mortgages in the past year one closed in March and the other in December I’ve only worked this job for a year. I think they want to see consistent money and a stable job I would talk to your mortgage broker

James Wise · Answer

Welcome to the site Derek. Great news for you. "2 years of employment at the same company to get most loans, including an FHA loan." is totally false. You must have this mixed up with commission only jobs or self employment. If you have W2'd income that is not primarily commission based you only need one or two pay stubs & you are good to go. Now get out there & buy yourself some Real Estate! 🔥🔥🔥

Mala S. · Answer

I’ve gotten a loan while being at my job less than a year. The lender was more concerned that I have been working in the same industry for several years and there was no gaps in my employment. Since you said you travelled for a year and were not working, this may be an issue. Check with a lender and see what they say about it. Don’t go online or to a big bank. Ask around for a recommended direct lender or credit union and talk to an experienced mortgage lender ( not someone who is just a phone screener checking off boxes in a software program).

Michael Ehmann · Answer

Got my loan with <1 year employment. If you're at $130k, you should be in very good shape to start.

Dan Bernstein · Answer

@Derek Schwarz...I have helped Phd grads buy right out of college... I believe the standard is you have to be in the same field of endeavor for 2 years. There are many misconceptions out there...most of what you read on the internet is false or misleading. I would meet with a reputable lender (get a referral) because it sounds like you will have no problem.

Michael Noto · Answer

@Derek Schwarz I would run your situation by a mortgage broker and see what they say. They should be able to answer the question you outlined fairly quickly. In my experience the fact that you were employed for the last 2 years is what matters more than your stints with each company. There is a mortgage broker my clients use a lot that originates loans in CT and MA. If you would like his contact info let me know.

Charlie MacPherson · Answer

@Derek Schwarz This is a question better suited for a mortgage broker. If you would like a referral, I have three that I work with. PM me if you want their contact information.Full Disclosure - I have no relationship with any of the mortgage brokers I work with aside of referring clients to them. I receive no compensation from any of them as that's highly illegal under RESPA rules. I'm not interested in crossing swords with CFPB!