My son does not meet the 2 year employment criteria. My wife and I are thinking about getting the loan on the house and then in 1 year, when he has 2 year employment, he can get the FHA loan transferred to him or refinance and receive a conventional loan. Is this possible?
If you do this, make certain that your son is on title with you. If he isn’t, the mortgage won’t be a refinance in the future, it would be a purchase and much more expensive. Also, make sure he makes the mortgage payment out of his own non-joint account (not an account with your name on it). This is because if you cannot do a Conventional refinance, you could always do an FHA Streamline refinance to take you off the mortgage – as long as he can show he’s made 12 monthly payments on his own. Just one note.. If your son was attending school (trade/vocational/college) and now has a job in his field of study, he’s already met the two year history and his income can be used to qualify.