The college-completion exception
Fannie Mae, Freddie Mac, FHA, and VA all allow recent graduates to qualify with less than the standard 2-year work history — as long as your new job is in the field you studied.
Acceptable documentation: - Diploma or transcript showing recent graduation (usually within 12 months) - Signed employment offer letter with start date + salary - First paystub after starting (2 paystubs is safer)
Time in school counts as your work history. A May graduate starting a job in June can close on a home in July with 30 days of paystubs.
How student loans really count in your DTI
Every program handles student debt differently:
- FHA: 0.5% of the outstanding balance (was 1% until 2024)
- Fannie Mae (Conventional): Actual IDR/PAYE/REPAYE payment if on the statement — even if $0
- Freddie Mac: Higher of actual payment or 0.5% of balance
- VA: 5% of balance ÷ 12, OR actual payment on statement
- USDA: Higher of actual payment or 1% of balance (0.5% with 10+ year payoff)
Getting on an income-driven repayment plan and getting the reduced payment reported on your statement is one of the highest-leverage moves a new grad can make.
The 90-day fresh-start playbook
Day 1–30: Apply for income-driven repayment on your student loans. Get the new (lower) payment reflected on your monthly statement.
Day 30–60: Start at your new job. Pull all 3 credit reports free at annualcreditreport.com. Correct errors.
Day 60–90: Get pre-approved. Provide diploma, offer letter, first paystubs, and updated student loan statement showing IDR payment.
Day 90+: Shop. You're a fully qualified buyer.
Is this path right for you?
Frequently asked questions
Can I buy a house 30 days after starting my first job?
Yes — if the job is in your field of study and you have a diploma + offer letter + 1 paystub.
Do student loans in deferment still count?
Yes. Lenders use 0.5–1% of the balance as an estimated payment unless the deferred loan will be forgiven.
What if I'm on Public Service Loan Forgiveness?
You still use the IDR payment on your statement. PSLF forgiveness is not guaranteed until it's granted, so it doesn't remove the debt.
Can I use my signing bonus as income?
Not usually. Bonuses need a 2-year history to count. Signing bonus is one-time and excluded.
Related guides
- The Complete First-Time Homebuyer's Readiness Guide
- How much home you can actually afford
- Pre-approval checklist
- Back to the Knowledge Base
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