FHA Loan Requirements

[Robert Zavertnik]

Hi All,

I am interesting in purchasing a multifamily property with an FHA loan. I've seen multiple requirements from different websites. The one that I'm concerned about is "2 years of employment" or "2 years of tax statements". I just graduated last year and I've been working full time for only five months. I make pretty good money, students loans are very manageable, and I have a 720+ credit score. Will I have trouble qualifying for loans because I'm new in the work force?

Also if anyone has any tips or experience in purchasing a multifamily any advice is greatly appreciated!

Thanks,

RZ

[Michael Seeker]

If you're working in the field in which your degree is in, then the 2 year work requirement can be waived. I purchased my first place with an FHA loan after 6 mos in "the real world". The bank required an official transcript.

Standards might have changed a bit, but you should be able to get a loan. As for investing in multifamily - my recommendation would be to buy a 2-4 unit property as your residence with that FHA loan. This is a great way to get your feet wet and one of the few ways you can get into multifamily rentals without 20+% down.

Now is a good time to go in and talk to a loan officer at whatever bank you'd prefer to borrow from (a lot of folks will go where they keep their savings/checking).

It would also help to have that discussion before you start shopping so you know how much the bank can/will qualify you for. You don't want to look at $400K properties only to find out the bank will only lend to you up to a $200K property.