High School as Employment History

 

FHA High School as Employment History

Question: My client has been employed for 1 year and previous to that was a high-school graduate. Will his time in high school count as his employment history?

Answer:

FHA will allow only one year of employment (and even no job history in the case of a new job offer right after specialized training or college graduation), BUT expect varied responses by underwriters on the topic of allowing high school as an acceptable education history in lieu of employment (see the guideline below).

FHA leaves it up to the lender to determine if high school is an acceptable education history. Here are a couple of approaches I’ve seen over the years.

Some lenders will take the stand that a borrower who was enrolled in a high school trade program, such as welding, and is now employed for the last year as a welder has an acceptable work/school history. But if the last year of high school was without any specific skills training and was because this school level is typically attended as a minor, then it’s not considered to be adequate to support the conclusion of a stable work history especially if the current job is not in a skilled trade.

Other lenders take FHA at their word and simply accept high school enrollment as an acceptable part of the work/school history no matter what the current type of employment.

Source: Believe it or not, there are some very driven high school graduates from trade schools who are gainfully and well employed in their trade. There are mortgage loan programs that will count your time in high school as part of your employment history. So, if this sounds like your situation, let’s talk and discuss how you can build a plan to become a homeowner vs. a renter. – Mortgage Currentcy