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Old 09-05-2007, 01:54 PM
 
1,061 posts, read 3,712,899 times
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My wife just finished grad school and is looking for a job. After she lands something, we plan on buying a home. I've read that a full doc loan typically requires 2 months of pay stubs and 2 years of tax returns.

My question is- once she lands a job, will we be able to apply as soon as she gets 2 months of pay stubs? If not, how long of a salary history will she need before we can qualify? She barely earned any income during those 2 years while in school, so her tax returns won't say much (we were not married at the time).
Also- our credit scores are 770+ and we have a 5-10% down payment. Maybe this will help us if her work history is too short?

thanks in advance!
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Old 09-05-2007, 03:01 PM
 
Location: California
510 posts, read 3,067,712 times
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Typically lenders want to see you with a 2 year job history. Some however will go as low as 1 year. If you choose the self employed route it's almost always 2 years history.

However, some lenders will allow you to qualify for a loan if you can show them a graduate degree, and a solid employment contract for a job within their degree.

Your credit scores being smoking, and you showing the ability to place your own personal money at risk along with theirs should allow you to get a home. Just be sure you have a very solid employment contract to give to the lender. It should talk about salary in it as well, because they will likely use that to qualify. It's highly likely they will want to see some sort of pay stub, that way they know she has actually accepted and started the job.
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Old 09-05-2007, 05:04 PM
 
Location: Orlando FL
1,065 posts, read 3,855,199 times
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ALL lenders will allow you to use grad school as a substitute for 2 years tax returns. You won't even have to produce a single pay stub as long as the bank can verify you have either an employment contract or sometimes just a letter from the HR dept will be enough.
They will however want to make sure closing does not occur until at least a day after the starting date of the job.
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Old 09-06-2007, 08:43 AM
 
Location: Gainesville, VA
566 posts, read 2,819,439 times
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All that is required for a conforming loan (full doc) is 30 days on your current job. So once your wife finds a job, you can start looking for financing and a home. In some cases the underwriter may ask a for a copy of your diploma, or a letter from the university with the dates that you were enrolled, but that doesn't happen too often.
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Old 09-06-2007, 11:11 AM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,666,895 times
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Even if your wife wasnt in school, they would still do the loan.

Salary is a commitment to a employee, and they usually offer the terms on paper. You will need to hand in this offer letter, and 30days on the job.
If she was working before, then it would be 1 day on the job.

2yr tax returns are required if she is receiving commissions, bonuses, and overtime. It needs to be established for 2yrs, and average out by 2yrs.


Quote:
Originally Posted by Go Blue 99 View Post
My wife just finished grad school and is looking for a job. After she lands something, we plan on buying a home. I've read that a full doc loan typically requires 2 months of pay stubs and 2 years of tax returns.

My question is- once she lands a job, will we be able to apply as soon as she gets 2 months of pay stubs? If not, how long of a salary history will she need before we can qualify? She barely earned any income during those 2 years while in school, so her tax returns won't say much (we were not married at the time).
Also- our credit scores are 770+ and we have a 5-10% down payment. Maybe this will help us if her work history is too short?

thanks in advance!
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Old 09-06-2007, 01:15 PM
 
1,389 posts, read 5,933,642 times
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All lenders now are requiring 2 yrs of w2's not tax return. Your wife needs 2 yrs of employment. If she was employed during school then she will be ok.
All Lenders are strict now because of the tighten of the Real Estate industry.
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Old 09-06-2007, 01:59 PM
 
1,061 posts, read 3,712,899 times
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Quote:
Originally Posted by lscalder View Post
All lenders now are requiring 2 yrs of w2's not tax return. Your wife needs 2 yrs of employment. If she was employed during school then she will be ok.
All Lenders are strict now because of the tighten of the Real Estate industry.
Can anyone confirm this? I find it hard to believe that someone who went to medical/law/business school can't buy a house until 2 years after graduation.
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Old 09-06-2007, 02:08 PM
 
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As Greg stated you only need 1 day on the job to qualify. Your school transcripts will be required. A letter of employment/contract will also be required.
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Old 09-06-2007, 02:10 PM
 
4,982 posts, read 12,664,442 times
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Oh, I forgot to add...the new salary will be the basis for qualifying. so, it does not matter if your wife did not make a cent while attending school.
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Old 09-06-2007, 02:20 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,666,895 times
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Dont worry you're not going to need 2yr tax returns if she is receiving a salary!

It all depends on what the Automated Underwriting states....

and they normally required 30days of paystubs....(2 paystubs)

OR

the U/W can override this and ask for a FULL Verfication of Employment after she works for 1day. If they allow this...she can go to work...and close after work!

Quote:
Originally Posted by Go Blue 99 View Post
Can anyone confirm this? I find it hard to believe that someone who went to medical/law/business school can't buy a house until 2 years after graduation.
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