Fred Glick, a Broker, Real Estate Realist, and Founder of Arrivva, holds a stellar track record with over $2 billion in residential transactions while grounded in a lifelong passion for real estate. René Pérez Jr. is an adept Broker and Pricing Savant, who specializes in strategic problem-solving and long-term growth.
Join them in the We Fixed Real Estate podcast by Arrivva, where they share expertise and insights about the dynamic real estate landscape. Arrivva, a leading real estate and mortgage brokerage, caters to buyers, sellers, and mortgagees with love, integrity, and a transparent fee structure. Featured in the Wall Street Journal, Arrivva is transforming the real estate landscape, one happy client at a time.
Here’s a glimpse of what you’ll learn:
- Discover what lenders need to see in your job offer letter to qualify for a mortgage
- Discover the timing rules that could make or break your home-buying plans
- Does your income qualify? Find out which income types are eligible and why
- Uncover potential conflicts of interest that could derail your home loan
- Learn the property and occupancy guidelines you must follow to qualify
In this episode of We Fixed Real Estate
Thinking about relocating for a new job and wondering if you can buy a home before you even start?
In this episode, we dive into the game-changing mortgage hack that lets you buy a house using your future salary. Yep, your offer letter could be the key. We’ll break down exactly what key documents lenders need, the timing rules, income types that qualify, and how to avoid common deal-breakers. Whether you’re relocating, leveling up, or chasing a fresh start, this episode is your fast track to turning a job offer into homeownership.
Resources mentioned in this episode
EPISODE TRANSCRIPT
[00:00:13] AI Podcaster 1: So you’re about to make a big move, right? New job lined up. Exciting stuff.
[00:00:18] AI Podcaster 2: Definitely. A common scenario.
[00:00:20] AI Podcaster 1: But there’s that huge question, isn’t there? Can you actually buy a home before you clock in for the first day?
[00:00:26] AI Podcaster 2: Uhhuh, people often think you need those first paychecks.
[00:00:28] AI Podcaster 1: Exactly, but forget that old idea.
. We’re looking at expert guidelines here.
[00:00:33] AI Podcaster 2: And it might be surprisingly straightforward in some ways.
[00:00:37] AI Podcaster 1: Okay. Let’s cut through the uncertainty then.
[00:00:38] AI Podcaster 2: Right. So the first thing to know, and this is pretty key, is that for conventional financing, that’s your sort of standard mortgage, not FHA or VA lenders can often use future earnings.
[00:00:50] AI Podcaster 1: From just the offer letter?
[00:00:51] AI Podcaster 2: Pretty much from an offer letter or an employment contract. So yeah, that piece of paper could genuinely be your ticket to buying a house sooner than you imagined.
[00:00:59] AI Podcaster 1: That’s really good news for a lot of people, but I assume you can’t just wave the letterhead at them. Right? What specific proof do they need from the employer?
[00:01:07] AI Podcaster 2: Absolutely not. Lenders need solid, concrete stuff. They’ll want a written statement from your future boss.
[00:01:14] AI Podcaster 1: Okay. And what needs to be in that statement?
[00:01:16] AI Podcaster 2: It has to clearly spell out your exact position, your precise rate of pay, usually the annual salary, and this is crucial, the confirmed start date for that income.
[00:01:28] AI Podcaster 1: Has to be official in writing. Makes sense. So they can trust the income is real.
[00:01:33] AI Podcaster 2: Exactly. It’s all about verifying the stability of those future earnings.
[00:01:37] AI Podcaster 1: And isn’t there a time limit involved something about when the job has to start relative to the mortgage? I think I read about 90 days.
[00:01:44] AI Podcaster 2: You got it. That’s a big one.
Lenders need to manage their risk. So typically your new job start date can’t be later than 90 days after the mortgage note date.
[00:01:53] AI Podcaster 1: The note date. That’s basically when the loan agreement is all signed and sealed.
[00:01:56] AI Podcaster 2: Precisely. So when you’re planning your house hunt and closing, you need to factor that in.
You’ve got roughly a three-month window after you officially get the mortgage for the job to kick off.
[00:02:04] AI Podcaster 1: Okay? 90 days. Good number to remember. Now, about that income, does it matter how you earn it, like salary versus hourly? Lots of different setups these days.
[00:02:14] AI Podcaster 2: That is a really critical point for this specific route using future income; it generally has to be salaried.
[00:02:20] AI Podcaster 1: Only salary.
[00:02:21] AI Podcaster 2: Yeah. Unfortunately, under these standard guidelines, future hourly wages usually don’t qualify. It boils down to predictability, you know? Salary is seen as more stable month to month.
[00:02:31] AI Podcaster 1: Right? They want that predictable flow.
[00:02:33] AI Podcaster 2: Okay? What if say your new boss is your uncle, or maybe the person selling the house is somehow connected to your new company?
[00:02:40] AI Podcaster 1: Ah, that’s a potential red flag for lenders. Conflict of interest.
[00:02:43] AI Podcaster 2: Right.
[00:02:43] AI Podcaster 1: The guidelines are pretty clear. You generally can’t be employed by a family member or anyone else who has a stake in the property deal itself, like the seller, the agents, anyone like that.
[00:02:53] AI Podcaster 2: Why is that?
[00:02:54] AI Podcaster 1: It’s to make sure the whole transaction is fair and unbiased. What they call an arm’s length transaction keeps everything above board.
[00:03:00] AI Podcaster 2: Makes sense. And the job offer itself doesn’t need to be like totally final, no ifs or buts. Rock solid is a good way to put it. The offer must be non-contingent.
[00:03:10] AI Podcaster 1: Meaning?
[00:03:11] AI Podcaster 2: Meaning, it can’t depend on anything else happening. Like it can’t say offer valid if you pass this final test, or if you sell your old house first.
It needs to be a firm, definite commitment, no strings attached.
[00:03:24] AI Podcaster 1: Okay, got it. Non-contingent offer. So we’ve covered the job details, the income type, potential conflicts. What about the actual house? Any rules there?
[00:03:34] AI Podcaster 2: Yes, there are. These guidelines we’re talking about, they specifically apply when you’re buying a one-unit property.
[00:03:40] AI Podcaster 1: Just a single unit?
[00:03:41] AI Podcaster 2: Right. Like a single-family home, a townhouse, or a condo unit. And crucially, it has to be a place you’re gonna live in yourself, your primary residence.
[00:03:48] AI Podcaster 1: So an owner-occupied purchase. Not for an investment property or a duplex, you plan to rent out?
[00:03:54] AI Podcaster 2: Generally, no, not under these specific future income rules for conventional loans.
It’s focused on helping people buy their own home when relocating for work.
[00:04:02] AI Podcaster 1: Okay. So if we kind of wrap this all together, it sounds like buying based on that future job is, well, it’s definitely possible. It’s not a myth.
[00:04:11] AI Podcaster 2: Not at all. It’s a real pathway.
[00:04:13] AI Podcaster 1: But, and it’s a big but, you’ve gotta hit some very specific marks.
It’s not automatic.
[00:04:17] AI Podcaster 2: That’s the absolute key takeaway. The opportunity is there, but meeting every single requirement is essential. You need that written proof from the employer position, pay, start date within 90 days. You need that salaried income.
[00:04:31] AI Podcaster 1: No family ties to the employer or the deal itself.
[00:04:35] AI Podcaster 2: Right. A non-contingent offer.
[00:04:37] AI Podcaster 1: Right.
[00:04:37] AI Podcaster 2: And it has to be for a single-unit home that you’re gonna live in, nail all that, and you’re in a good position.
[00:04:43] AI Podcaster 1: So for anyone listening who’s in that boat, new job offer in hand, dreaming of buying before the move, remember these conditions. Get that official letter sorted, make sure it’s salary. Check for any conflicts, ensure the offer is solid, and focus on a home for yourself.
[00:04:56] AI Podcaster 2: Yeah, planning is key.
[00:04:57] AI Podcaster 1: Definitely.
[00:04:58] AI Podcaster 2: Yeah.
[00:04:58] AI Podcaster 1: So knowing all these specifics now. If buying before you start is the goal, what’s the very first thing you should do the moment you get that job offer in writing? Something to think about as you start planning that big move.