Secret Tip to Buying a House Straight Out of College without 2 Years Work Experience

Chad Rankin / Aug 19, 2022 / Expert Articles

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Are you a recent college graduate in the last two years and looking to buy a home? Hey, there Chad Rankin with the Rankin Mortgage Team in Worcester, Massachusetts. The reason I ask is we just helped a young family buy a home, and they came to us with a question. They found us online, gave us a call, and I'm glad they did.

And they sure were too because they were told at a national big box, retail bank call center. They were told that they would need to have two years of work history prior to being able to get a mortgage. Well, I'll be honest with you. It couldn't be further from the truth and I'm kind of shocked that that's what they were told.

So I had the pleasure of telling them that no, you can buy a home right now. And in fact, you could have bought a home a year ago. At the end of the day, it's really, really simple: going to school is working. And so we just need to simply document that diploma and your transcripts that you graduated and that's your work history.

So literally I've helped people buy homes, days out of school. That big box retailer, they're national, and they don't offer state housing programs. So not only was I able to tell them that no, you can buy now, they had saved up I think it was it's $12,000. And that was enough for a 3% down payment or 3.5% down payment.

And I looked at their scenario and I said, well, gosh, you guys got these great incomes, you've gotten promotions and everything. You can start saving significantly more now, but I really don't even need you to do that. Why don't we utilize these funds to pay down a little bit of debt right here, pay off like four or five grand in debt to eliminate literally $300 in monthly payments?

That equated to about $60,000 in additional purchase power. Wow, right. I mean I just told them what to do to bump up their purchase power like overnight. Well the other lender didn't do that because they needed every penny of that to go towards a $300,000 loan, down payment is around 10 grand.

Well, they only had 2000 additional, how are they going to pay the total seven or 8,000 a dollars in closing and settlement costs? Well, what I told them to do is pay off that debt, and then I can bump up their purchase power and you can save that seven or $8,000 for the closing cost. And now where's the down payment coming from?

I got them into state housing, mass housing, got them $15,000 in down payment, 5% of the $300,000 purchase. Second mortgage at a 2% interest rate for 15 years. And guess what? They couldn't have gotten that anywhere else, but a mass housing originator, such as myself, and somebody that knows the program inside and out.

So it was twofold and a really awesome outcome. And that's kind of what we live for here is trying to think outside of the box, do things that others don't know how to do, and really truly serve first time home buyers in a better way.

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So again, Find My Way Home network, which I'm a part of here with some of the best loan officers and the entire country, top producers all in the top. 1%. If you are not in New England, by all means, I want you to please reach out to an expert in our network. And if you're here please reach out to me. Thanks, take care.

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Chad Rankin

Hi, I'm a mortgage expert living in Massachusetts. I am also licensed to help with your home loan in several other States across the Country. Do you have mortgage questions? How can I help? View Profile

Chad Rankin NMLS # 490282 Senior Loan Officer 324 Grove Street Worcester, MA 01605 (508) 928-4141

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About Chad Rankin

Hi, I'm a mortgage expert living in Massachusetts. I am also licensed to help with your home loan in several other States across the Country. Do you have mortgage questions? How can I help?