re: FHA Loan

[Edwin W.]

Hello,

I have been going to school full-time for the last 2 years. And I have about $20,000 in my IRA and credit score of 638. Can someone get approved for an FHA loan to buy a duplex, but has no work history for the last 2 years? And can the income from one of the units be reported as income?

FAQ: Can I use education or military service in lieu of employment?

FHA does not impose a minimum length of time a borrower must have held a position of employment to be eligible for a mortgage. 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.

Handbook 4155.1: 4.D.1.b