The general rule of thumb is that a borrower must demonstrate a two-year employment history to have their income considered in the qualifying process. This rule can create a challenge for recent college graduates who are gainfully employed in their career, but do not meet this two-year requirement.
In this case, an exception to the two-year employment history rule applies. Recent college graduates who are working professionally in their field of study in college are allowed to count their college years as part of the employment history, even though they were studying and not yet earning income. A diploma and college transcripts may be required to document this fact.Generally, the new professional will be required to be on the new job receiving income, documented by recent paystubs and possibly an offer letter detailing their compensation.
Note that bonus, commission, and other incentive income is still subject to the two-year historical receipt requirements to be considered as qualifying income for the recent grad, but the base income/salary will be considered as qualifying income. Signing bonuses are not considered income but as one-off bonuses.
Detailed discussions with an experienced loan officer are vital to determine loan qualification possibilities for recent college graduates.
