Based on the information that you have posted, you are probably a little premature in jumping into home ownership. With only one credit card that is two months old, you will likely not have an established credit history. I am assuming the 20K in debt is student loans. You typically need to have at least 2-3 trade lines with a 12-24 month history.
The minimum down payment will be determined by the loan program, the type of occupancy, and your qualifications as a borrower.
Only two 100% Financing programs are currently available. One of which is the VA loan program. VA financing is only available for eligible veterans. The second 100% option is USDA financing. USDA loans do have geographic restrictions to rural areas though.
For FHA and FHA 203K mortgages, the minimum down payment is 3.5%. That down payment can be from the borrowerâ€™s own funds or a gift from a family member.
Conventional mortgages typically require at least 5% down for a primary residence. Any conventional mortgage with less than a 20% down payment will require monthly mortgage insurance. Fannie Mae offers special HomePath Financing for eligible HomePath properties. It is only 3% down for primary residence.
All loan programs today require a verified continuous 24 month employment history in the same line of work, but not necessarily with the same employer. There are only a very few of exceptions to that rule. Those exceptions are as follows:
1. If you are a recent college graduate, you can use your time spent in college to make up part up the 24 month history. A copy of your college transcripts will be required.
2. If, within the last 24 months, you have had a 6+ month gap in employment, then you must be employed at least 6 months since that gap ended.
3. For someone with a longer break in history, the same 6 month rule is followed.
For someone who is salaried or hourly, you generally must be employed at least 30 days with the current or new employer. This is due to the fact that a pay stub reflecting at least 30 days of YTD income is going to be required prior to closing.
If you are paid by anything other than a W-2 (i.e. a 1099, self employed, etc), then you must have 24 months of receipt of that type of income. Some exceptions are possible if your current employer switched your compensation from W-2 to 1099 or commission.
Closing on a mortgage prior to starting a new job is only considered on a case by case basis for certain fields. Generally, a non-revocable employer agreement confirming your new salary, position, and start date will be required. Since you would be brand new to the workforce, this would not be an option for you at this time.
Working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of lending experience.
Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePathÂ® | HomePathÂ® Renovation | HomeStyleÂ® Renovation | VA | USDA | GA Dream | Jumbo Financing.