College Graduate

Many lenders will use college credits in the borrower's chosen field to determine experience. The graduate will have to provide a copy of the degree earned. Lenders may also request a copy of the borrowers transcripts if the need further verification. It is easier for graduates to qualify if they have started a job that is in some way associated with their degree. The other important consideration is not a great amount of credit but a good credit history.

College graduates do not need 2 years of work history if they are working in a field related to their area of study. The school work fulfills the 2 year work history requirement.

As many are first time home buyer as college graduates, the lender might ask for the borrower's rental history. If a student kept up a good credit history, he/she may not need to have a rental/mortgage history since many have been living with their parents.

There are loan programs that will accept alternative credit tradelines to qualify college students for a home. Letters of creditworthiness from utility companies, insurance companies, etc can be used to the underwriter that you have a history of timely payments.

If you are a recent college graduate with student loans be sure to obtain your loan papers in addition to the standard mortgage documentation. If your payments are deferred you may be able to increase your buying power buy excluding the payment from your debt ratio. Student loan documents are usually available online through Sallie Mae's website.

One other loan option for college graduates is to have a parent co-sign on their loan.

If you have student loans with deferred payments, they will still count against your maximum debt ratio if you are applying for a conventional loan. If you are applying for an FHA loan, student loan payments do not have to be counted against you as long as they are deferred for at least 12 months.

There are no absolute requirement stating on how much time you have until it is required to start paying your student loans. However, student loans may be used when calculating your income to debt ratios to see if you will qualify for a FHA loan.

For members of certain professions, including medical professionals, physicians, doctors psychiatrists and others with an MD or DO, programs are available which allow for flexible handling of deferred student loans.

» DISCLAIMER: The information contained in this article on 'College Graduate' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.