- Graduating college is an exciting time
Graduating from college is a huge milestone in our lives. One chapter is closing and many new ones will be opening. For a lot of college graduates, just starting a new career is a big step. For some, this graduation actually means the passage and right to take part in the American Dream. For a lot of us, this means buying a place of our own. This could be a townhome, condo or single family house, but the plunge of buying a home is in our forefront.
I have a lot of clients that call me from time to time and ask “Gary, if I just graduated from college, can I buy a home?” Well college graduates, the answer is probably yes, but most likely with a catch (as most mortgage loans these days have). Let me share what is a possibility if you recently graduated.
My advice is to look into getting an FHA loan. FHA loans will allow you to use your degree as work history for 2 years on the job as long as your new job is in the field you graduated in. For instance, if you went to school to study computer engineering and landed a job straight out of college as a computer engineer, then you can use your college degree as work history. For a lender to document your loan file, they will just need to get a copy of your official transcript from your university.
Remember, the catch is the loan is still an FHA loan and you have to meet the rest of the loan approval criteria. This means you still need a decent credit score, preferably a 620 or higher, and you will still need to have the minimum down payment.
So if you recently graduated, need financing and help from someone who has helped many college graduates, or even just ask questions, feel free to give me a call.
Gary Miljour is a licensed Loan Originator (NMLS ID: 207208) in the State of Arizona.
MyCityLender | NMLS ID: 161428 | ARIZONA MB-0910380 
I just graduated from nursing school and got a job. I don’t start working until I pass my boards (should be June). My fiance and I are trying to buy a home. He has had a problem with getting a loan because he is self-employed (hair stylist) and does not have 2 years of tax documents. So with me being a graduate now, will we have a better chance of getting a mortgage, or will we have to wait until I start working? Thank you!
Jeri,
Thanks for the comment,
Your question is a good one and let me answer this for you. With being a full time student you can use your diploma as time on the job, so having your 2 years of experience will be fine as long as you provide the lender proof of school transcripts. However you do have to first start your job. Usually an offer letter and 2 weeks of pay stubs prior to closing is sufficient for loan approval for you. As for your fiance, he would be treated as self employed and he would have to have the 2 years of tax returns before being able to use his income. My advice would be to proceed in the loan in your name only since your are not married yet.
I will be graduating from a professional program in 2012 and at that time my husband and I will be moving to a different city and will be wanting to buy a house. He will have over 2 years with the company he is at making a good amount of money. We will be wanting to buy a house in March or April and I graduate in May. I will not be officially licensed until I graduate in May so I will likely have a job offer at the time we want to purchase a home, but will likely not have any paystubs. We are firstime homebuyers. If we are not able to purchase a home and move from our apartment in our current city into a house in the new city (my hometown), then we will have to live with my parents which is less than desirable. Is any of this possible?
Dear Holly,
Thanks for the comment and let me answer your question. If you use an FHA loan, you can use your school as professional experience as time on the job. You will probably have to provide at least 2 paystubs. So yes this is very possible. If I can be of any help, please feel free to contact me.
What about with VA loans? Are those years of college computed the same way in order to meet the 2-year requirement?
Dear Jay,
Great Question. The answer is yes, VA loans treat those college years as time on a job.
Let me know if I can be of any further help.