Financing in 94089>Question Details

Helen, Home Buyer in Sunnyvale, CA

Can I get a mortgage right after graduation?

Asked by Helen, Sunnyvale, CA Sun Jun 3, 2012

I'm an international student and I came to US two years ago for master's degree. I am graduating in mid June and will start a new job in Silicon Valley this August. I plan to purchase an apt or house soon. My question is, will I be able to get a mortgage before I start my job (i.e. in late June or July)?
I have a credit card which was opened on 10/2010. My credit score is 753. I still have 20K balance on tuition loan. I only have 3 months employment history in US, which was last summer when I interned in the same company I will be working in.

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17
The other issue that has not been discussed is your visa status. You must have some type of visa that will not expire any time soon in order to qualify for a loan. Different lenders have different requirements for the type of visa, but HBSC seems to be the best one recently for international borrowers.
Marcy Moyer
DRE 01191194
1 vote Thank Flag Link Mon Jun 4, 2012
Everyone here wants to be helpful, that is what we do for a living. However, protect yourself, relocate and learn the area before making a huge commitment. Besides, the lender will require that you be on the job and not on probation. Chances are your new job does not have a probationary period, so reverse it, put your new job and city on probation, see if you like it first, good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
1 vote Thank Flag Link Mon Jun 4, 2012
Hi Helen,
Where did you end up buying?
0 votes Thank Flag Link Mon Sep 30, 2013
Hello Helen, you may qualify with one month of paystubs for FHA financing. You may consider CHDAP half percent down payment program with a minimum 640 fico score. You can buy with minimum out of pocket expenses with half percent down and can contribute towards your closing costs as well. Here are some links to study and consider.

http://www.under640ficoscoreloans.com/Pages/Conventional.aspx

http://www.under640ficoscoreloans.com/Pages/CHDAPLoans.aspx

http://www.under640ficoscoreloans.com/Pages/HalfPercentDown.aspx

http://www.under640ficoscoreloans.com/Pages/ContactSheryl.aspx
Sheryl Arndt, Real Estate Broker - Sr. Loan Officer CA only
REO & Short Sale Specialist
Credit Repair At No Cost
20+ Years Experience
DRE# 01140252
NMLS# 297251
760-486-4225
9am till 9pm 7 days
0 votes Thank Flag Link Tue Jan 8, 2013
Hi Helen

You should have no issue getting a loan.

If you need help give us a call.

Perry

http://www.ruthandperry.com/
0 votes Thank Flag Link Tue Jun 26, 2012
Hi Helen,
My mortgage contact confirmed that based on the information you have shown here, he can get your loan through after you can show 1 month of employment income (for a high-tech job that typically means 2 paystubs). He has some more questions to ask you regarding visa, etc. Hit the contact button under my profile photo if you want to know who he is and his contact info. (The reason I want to give his name and contact to you privately rather than publicly is I know 3 excellent mortgage people, but picked the 1 that I know specializes in cases like yours. I prefer not to post that 1 person's name and have the other 2 feel bad that I referred you to the other mortgage professional. All of them are excellent, but I feel one of them specializes and matches your situation best.)
0 votes Thank Flag Link Mon Jun 4, 2012
The basic answer to your specific question is no. Part of the new world of real estate lending is that we cannot make loans to anyone who does not have enough income to support the payment (on a 1-4 unit purchase of an owner-occupied property) regardless of how much money you put down or how much education you have. If you are not working, you would need enough non-employment income (investment, etc.) to make the payments or a co-signer.

HOWEVER, if you have a job that is related to your education, we typically can use that job and that income as effective income even though you may have only started a few weeks ago.

So in short, you can’t buy until you actually start your job – but you probably can right after you start.
Web Reference: http://www.SacRELender.com
0 votes Thank Flag Link Mon Jun 4, 2012
Many thanks for your help! I will check with the mortgage broker in CA to see what can I do. Below is also some additional information I replied to Robert before.

"My parents is willing to help me for the down payment - at least 20%, maybe 25% or 30% depends on the price of the house. I know that I still need to wait until I start my job. I just want to know if there is any chance I can get the mortgage within 1 or 2 months (instead of typical 2 yrs) after I get my first pay check."
0 votes Thank Flag Link Mon Jun 4, 2012
Helen,

I closed recently with a buyer which sounded similar to your situation. He did have to have his VISA and get through the probationay period at his job. He used one of the City of San Jose "Begin" Programs and had down payment from parents. The lender wanted to so that money in the bank seasoned. Also, because the information is in a foreign language translation was needed. I have some suggestions for you.
Flag Wed Jun 6, 2012
Hello Helen, I recommend you direct your questions to a loan specialist. A good one should be able to prequalify you over the phone to determine your ability to obtain a mortgage. If you would like a start, the last lender I used for a buyer was Todd Galde at RPM Mortgage. Here is his contact info:
https://www.facebook.com/ToddGaldeHomeLoans/info
Most lenders will ask you a series of questions about your work/school history, finances, debt, income and the amount of your down payment.
0 votes Thank Flag Link Mon Jun 4, 2012
Jim brings up a good point .. the probationary period. Maybe Kentucky companies generally don't have a probationary period, but high-tech companies here in Silicon Valley generally do have a probationary period. Typical around here could be 3 months or 6 months. The probationary period allows the employer some time to see your work and decide whether things are working out. However, I think my lender contact can present to the underwriter that your summer work with the same employer should count toward reaching your probation period goal. It should count because obviously they like your work or else they wouldn't have given you a permanent job after graduation. I'll check with my lender contact specifically on this point.
0 votes Thank Flag Link Mon Jun 4, 2012
Helen,

FACT: Education CAN be considered "time in grade" for the purpose of meeting the traditional 2 years in same employment guidelines. Specifics include that the new employment must be related to the schooling. I.E., Engineering degree leads to position as an engineer. Welding certificate leads to position as a welder.

Most lenders will require a copy of degree or certificate. Some will want copies of your transcripts (yes, a lender may want to know you were getting A's and B's and not C's and D's). A copy of the offer letter for your new position AND a copy of your first pay check would be the norm. Erring to side of caution, a underwriter may ask for evidence that there is no probationary period in your new job.

The fact that you interned for the company you are being hired by is very beneficial to your cause.

Above and beyond the employment issue, I would be a little concerned about trade lines (lenders usually want three and you mention only one credit card). And, your residency status would be required (permanent resident? Visa type?).

BTW, the guidelines for most loans (FHA, VA and Conventional) all allow for using education as employment experience...most lenders will accept this for qualification. As always, talking to a licensed mortgage professional will usually garner the best results. Best of luck to you!
0 votes Thank Flag Link Mon Jun 4, 2012
Helen,
I second what Cindy is saying: it is best to ask a few lenders (as they vary in their guidelines).
Overall it is going to be a challenge. But best to ask the specialists: the loan brokers.
You can also find "hard money" lenders, who will lend with looser guidelines, but the interest rate will be higher. Sometimes, depending on your priorities, it could be a solution.
0 votes Thank Flag Link Sun Jun 3, 2012
Helen,
Usually lenders like to see 2 years of experience, but what helps you is your employment is apparently related to your 2 year master degree. (I think I can assume that without asking you based on the fact you got a permanent job after graduation at the same company at which you interned.)

By any chance, do you have parents willing to gift you some funds to boost your down payment? That could help too.
0 votes Thank Flag Link Sun Jun 3, 2012
Hi Helen, That sounds promising. Your situation sounds very similar to the one he/we dealt with last year.
Flag Mon Jun 4, 2012
Hi Robert,

Thanks for your reply. Yes you are right, the job I got is related to my degree, also related to my previous working experience (in Asia) before the master degree. My parents is willing to help me for the down payment - at least 20%, maybe 25% or 30% depends on the price of the house.

I know that I still need to wait until I start my job. I just want to know if there is any chance I can get the mortgage within 1 or 2 months (instead of typical 2 yrs) after I get my first pay check.
Flag Sun Jun 3, 2012
Last year, one of my lender contacts dealt with a very similar case. The homebuyer was a student from Asia who came to the US for her degree in engineering at a BigTen powerhouse university and was about to start her job at a Silicon Valley semiconductor giant. I'll ask my lender contact how it went with her and will let you know.

I vaguely recall my lender contact saying he couldn't do anything BEFORE she started work, but once she started her new job, he could get started working on her loan. Rules change so quickly in lending, so I'll check with him how that scenario plays out in 2012 June.
0 votes Thank Flag Link Sun Jun 3, 2012
Typically lenders want to see a 2yr work history, whether before or after graduation is not the issue. The also typically want two years of rental history. By the way, again "typically" those years do not have to be contiguous, but they do prefer they be in the same type of occupation. So for example, if you worked in a shoe store your freshman through junior years in college 3 months each year, then in your senior year worked for a fitness center selling memberships... you would have the needed 2yrs of work experience in the same occupation. The same approach is typically taken for documenting 2yrs of rental history.

Notice however that I say "typically" because for every rule there is an exception. I dare say if you could put 35% down and had $1mil from an inheritance in the bank some underwriters for loan programs typically with slightly higher rates, designed & targeted for exceptional situations would find a way to loan you the $$$'s but in such a way as to protect themselves.

The best advise I can give you is make sure you not build a strong relationship have a Smart, Trustworthy and Caring Realtor, but also a lender. As in every industry, the skills, experience & ethics of Realtors & Lenders varies widely and you have your masters that fall into the top 5% of their trade and then you have the majority who do not possess the same skills, etc.. A top 5% Realtor will know who the best Lenders are. One of the key criteria in my book for a great lender is NO SURPRISES, they know the guidelines for loans and understand what the latest requirements are, they find out EARLY on in the purchase process what the home you are interested in has as obstacles to funding and how to work around &/or resolve them.

If you would like to connect with one of my time tested and "battle" proven lenders that I recommend to my client, email or call me!

Stu
408-209-0849
Stu@StuCarson.com
http// http://:www.JustMyProperties.com
0 votes Thank Flag Link Sun Jun 3, 2012
Hi Helen,

You are not likely to qualify going the conventional route. Lenders generally like to see you in a job (same career) for two or more years. If you only have one credit card open for two years, you also may not have deep enough credit.

You didn't mention your ability to pay a downpayment or closing costs. When in doub, it's always wise to consult with a mortgage broker directly instead of asking people on Trulia. A lender needs to review your entire financial picture, pull your credit, etc.

Good luck.
0 votes Thank Flag Link Sun Jun 3, 2012
You probably cannot:
Possibly with some creative financing; possibly private:
Lenders are basically looking at two things; your history of paying your bills, (limited) and your job dependability, (non-existant).

If you do secure a private loan now, you may find that you will be paying an exorbitant interest rate; perhaps it would be better to squelch your impatience and rent for awhile.

Good luck and may God bless
0 votes Thank Flag Link Sun Jun 3, 2012
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