Getting Creative With FHA Loans

[Nic DeAngelo]

I have a great SFR deal lined up that would be perfect and generate some good cash flow down the road.

That said, I need the minimal down payment offered through an FHA loan to make this work and some of the FHA qualifications I can't meet. Specifically, the 2 year employment history. I'm a student so my full time employment has been subject to my class scheduling and my part time income isn't enough to meet the required income for the house.

The deal is GOOD. Good enough that I lined up two investors to handle the DP, some of the fix up costs, and pay part of my rent for the first few months.

With the 2 investor's huge cash backing, is there any way around the employment history while still keeping the FHA loan in my name?

Thanks!

[Bill Gulley]

Ah, the Devil is in the details! Just had to say that.

True. However, there are two exceptions to the employment history requirements. 1. Is the borrowe has come off of active duty from the military (they could go VA, but they can also opt not to go VA and go FHA or Conventional. 2. A student graduating from college and who has a job (even a job offer) working in their major course of study. The second requires documentation that many loan officers and brokers are not familiar with evfolio requirements. even if they wanted to go down that road. The same rules hold true for conventional loans.

Underwriters have written requirements from the investors who buy the notes and portfolio requirements to meet as well. They will be responsible for the loans they approve in several ways.

Soas the Devil lady pointed out they may have requirements that exceed HUD, but they may not contradict them or even impede them. So, while each lender has some leeway they may not come about.

I suggest you look around for other lenders.....