Post # 1
I will be graduating with my bachelor’s degree this spring, with a degree in elementary education. I am hoping to be able to find a full time teaching position to start in August. I was just wondering how long you have to be employed to be approved for a mortgage. I have very high credit and will have very minimal college loans to pay off (less than $10k).
My fiance will not graduate until 2015, but we want to avoid renting if we can at all avoid it and would rather just go straight into our own home. I know it will be tight since I will be a teacher, but if it works out that I can afford a home only off of my own income (and I will do plenty of research on that end), we want to go for it.
Also, extra questions if anyone feels up for answering:
1. How much money did you have to put down on your home (percentage of total price)?
2. Did you get any first time home buyer benefits?
Thanks. I just want to start planning ahead as much as possible.
Post # 3
We moved into our first home exactly 1 year after graduating. When we finished school we both had literally no savings left (no debt either except our cars) but not much money to our names. We rented for a year, and scraped together the minimum downpayment (~18K) which was the minimum for us (I think 5% of the total mortgage cost). I don’t know how it works in the US, but here if you have less than 20% (I think) as a downpayment you need to get extra loan insurance, so that upped the cost of our mortgage by about 3-4%.
We were eligible for a first time homebuyers credit on our taxes, and my DH was able to take out money from his RRSP (the Canadian version of a 401K) since it was going towards our first home, he just needs to put the money back on a certain schedule.
It made sense for us to rent for the year, but having to move all our stuff again was a huge pain. If you can make it work, that’s awesome! Good luck!
Post # 4
@rel318: I went straight from college to grad school and we bought a home near the end of my first year of graduate school. So I’ve never had “stable employment” (even though I’m paid as a research assistant with benefits, etc.) according to our mortgage lender and it was a no-go to have my name on the mortgage.
My husband is a bit older than me and has had a stable career for years prior to the purchase of our home. We ended up getting the mortgage is his name only. We were lucky enough to have substantial savings though (my husband sold a business during his career and our savings included profits from that) and we able to put 20% down. We did get a first time home buyer credit since we bought in 2010, I think we got the max amount of 8k.
I know this is a lot different than what your and your FI are experiencing, but don’t let it discourage you. Start talking to lenders and see if getting approved is even a possibilty, find out exactly how long you need to be employed for and what kind of downpayment would be needed. I do know that you have to have a downpayment for sure, no money down is a thing of the past.
Post # 5
i got my house 1 year after graduation. if you graduate college and get a full time job within 3 months of graduation, your time in college counts toward the 2 years of employment required (atleast in ky it works like that) to get a mortgage, i even had to bring andopy of my deploma kinda like proof of work. i got the fha mortgage because i did not have 20% to put down, only 3.5% is required with that type of loan (PMI is required though).
1. i had zero. i got lucky and got a grant from the cincinnati bank for 1st time home buyers (you should look into that, you can go to any bank it is just a agrant that is unrelated). 3.5% was required with the fha loan, but the grant covered that..i just have to life in my house for 5 years or a pay a penalty which is pretty small.
2. the grant.
some people get turned off my the fha loan because you have to pay the premium mortgage insurance which is not refundable and added to your mortgage (ours is $75/month). but we still have the rest that is going toward our mortgage so it is still a much better option then renting!
people always tell me im to broke to buy a house, and i tell them im to broke to rent!!
the link for the grant is,
it says its closed right now, i think they open it up in march every year. something to look into for your future.
Post # 6
@rel318: I would try to aim for 20% down (I had much more than that, but to avoid paying extra points on your mortgage and getting mortgage insurance, 20% down is the way to go). Also, if you’re buying straight out of college, you might have trouble securing a mortgage. They really would prefer seeing several years of employment history – I had to produce my college transcript to show that I was in school fulltime.
I bought at the time when there was the first time home buyer tax credit. I got it, but it wasn’t the reason why I bought. And I think for that one you have to return if you sold your home within X years
Really make sure that the numbers work out for you. It turns out it was more expensive for me to own than to rent with the condo fee, the city taxes, extra maintenance, etc. I was paying a bank to hold money for me to eventually own.. that didn’t sit well with me. Plus, my future was uncertain. I ultimately ended up selling the home. I love the flexibility of renting and being able to downsize whenever possible.
Post # 7
@rel318: We are in the process of building/purchasing our first home. We graduated 3 1/2 years agos. It will be finished in about 6 months. So we will be 4 years out by then.
We waited because
1) we wanted to make sure we would be in the area for a while
2) we wanted to have secure jobs/incomes (most mortgages require a 2 year work history)
3) we wanted to save up a significant down payment
OP, as unappealing as renting may seem, there are actually benefits to it. You can learn what area you really want to live in without the committment of a mortgage and if you don’t have a decent cash reserve/savings, you could find yourself in trouble if something goes wrong with your home (new roof, new water heater). When something breaks while renting, you are not responsible for paying for it usually. I would suggest waiting until your FI is gainfully employed because what if he cannot find a job and you need to move?
Post # 8
@bmo88: Yeah, we are definitely thinking about the risks, I just feel like it will be difficult to save a lot of money if we rent first.
Post # 9
We bought our first house when we were both full time students. FI worked full time while going to school and I worked part time. You need 3 months of full time empyloyment to be approved for a loan and will still likely need 15-20% down payment.
Post # 10
@rel318: I graduated with my BSN in may 2011, and bought my first place may 2012 by myself. I didn’t need any money down, I ended up getting a 100% financing rural development loan. I did get a break on my taxes due to buying a home, but other than that, I don’t think I got any other benefits. I definitely feel like buying is the way to go, I hated paying rent knowing it was just going out the door when it could be going towards a mortgage!
Post # 11
At least where I live (AZ), you only need 10% down to get a conventional loan. If you do not have 10%, you will need to get an FHA loan and pay a mortgage insurance.
Post # 12
We bought our home about a year and a half after I graduated…. But DH had been working a while. I know you are supposed to show 2 years work history at least for our loan type but Its not strict. We got a zero down USDA loan.
Looking back tho I think we jumped the gun a bit. Zero down feels risky to me now. Cus we can’t leave even if we had to. If something came up…. Wed have to pay 10k to sell the house because of realtor fees.
Don’t rush it…. Take your time, payoff your student loans and save a down payment.
Post # 14
My FI and I are working on buying our first home and I will be graduating from my current college in about two months. However, I won’t be done with college, I will have my ADN but I’ve already been accepted into a college to get my BSN, and I also plan to get my masters as well as specialize. At least I can work as an RN to help contribute more while I work on the rest of my education. But we found an adorable home in a great small rural town that we love and we’re just working our way through the steps to purchase it!
For our home we are thinking of going a RD loan route so we would not have a down payment but would only need about $800 for part of the closing costs, and the sellers will pay about $3,000 in the rest of closing costs. Our monthly mortgage payments would be about $400 with insurance and ultilites factored in already. We got lucky to live in an area with some very afforadable housing. The home we found is only $57,900, but we plan to make an offer for lower and see where we get.
Post # 15
@rel318: My husband he actually cheated. He bought an apt on a student credit line.
What he did was this. He searched for presale buildings on his second year of College. He asked his parents to lend him some money for a couple of days so this is what he did.
His Parents lend him 30 000 for the downpayment and he was granted a credit for the rest. At the bank
Then he got a student credit line and paid his parents the 30 000 he paid it while he was still in school. And then when the condo was ready two years later he used his already pre authorized credit.