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How long does it take to qualify for a USDA loan as a recent graduate?

March 25th, 2022 by

How long does it take to qualify for a USDA loan as a recent graduate?

USDA Loan as a recent graduate in Tennessee, Florida, Alabama and TexasIf you have recently graduated, you may be wondering how long it takes to qualify for a USDA loan as a recent graduate. Unfortunately, we are seeing an influx of lenders issuing qualification letters that are not worth the paper they are written on because they do not understand the guidelines when it comes to USDA loans. The income eligibility guidelines for USDA loans require additional review of unique scenarios which include previous schooling that resulted in a recent graduate.

With the increasing number of students who have recently graduated from college, a technical school, or any other type of education course, it’s important to understand how you can qualify for a USDA no down payment loan program with a limited employment history.

Be sure to download our FREE Comparison Chart that compares USDA, VA, FHA, and Conventional loans in one convenient side-by-side chart.

Also remember to take advantage of our Second Chance Service. This free resource allows you to receive an expert second opinion which can be a great for recent loan denials or guidance on how to make the most out of your home loan qualification.

What are USDA Home Loan qualification requirements for recent graduates?

Where certain loan programs may require a two-year work history, USDA guidelines can be flexible when trying to qualify withHow long does it take to qualify for a USDA loan as a recent graduate base employment wages (hourly or salary). USDA qualifying guidelines only require that one year of income be received at time of loan application.

However, this does not require a buyer be with the same employer for the entire year! Remember, USDA guidelines state that the “one year of required history may be met through a combination of employers, education, or military service” and the one-year history “does not have to be with the same or current employer.”

This is truly great news for those recent graduates because USDA guidelines will permit their prior education to be included as part of the one-year history requirement!

Please note that today’s topic dealt specifically with those USDA applicants who are employed and not those that are considered self-employed. If you are self-employed or have been denied for a USDA loan due to employment history, please contact my office today so we can begin to review your loan scenario.

Wow! I realize that we covered a lot today, but remember that we are staying on top of the USDA qualifying process and are here to help you navigate the steps from initial USDA loan qualification to closing. Simply call or email if you have any qualifying questions, want to discuss a new scenario, or would just like to take advantage of our free 2nd opinion service!

As a USDA and VA Approved Lender in Florida, Tennessee, Alabama, and Texas, let our experience and expertise go to work for you!

Just call, email, or text to discuss your scenario and let us show you the “Metroplex” difference!

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