According to Duane Buziak, a recent graduate can qualify for a mortgage for recent college graduates sooner than most people expect, but only by preparing the right pieces in the right order. Two years at one employer is not a hard rule, student debt does not automatically rule you out, and you do not need 20% down. By the end of this guide you will have a pre-approval-ready file and a rate comparison you can act on. At Mortgage Rate Hawk, the approach is simple: We Don’t Just Look. We Hunt. Before you start, gather your offer letter or recent pay stubs, your student loan statements, and your last two months of bank statements.
Step 1: Check Your Credit Without Hurting It
For most graduates the issue is a thin file rather than a damaged one. Start at AnnualCreditReport.com, the federally authorized source for free reports, and pull all three bureaus. Read every account. Student loans often show up under several servicers after a transfer, and a duplicated or mislabeled loan can inflate your apparent debt.
A soft pull is a credit check that does not affect your score. Duane Buziak at Mortgage Rate Hawk offers a free no-touch credit check, so you can see where you stand and which loan paths fit before any hard inquiry is on your report. That matters when you are still deciding how much to hunt.
Then decide what to do about a short history:
- If you have one or two open accounts: keep one card active, use it for a small recurring bill, and pay it in full. Aim to keep reported utilization under about 30%, lower if you can.
- If you have no accounts at all: talk to a loan officer before opening anything. Some programs can work from a nontraditional credit history, but the documentation is different.
- Either way: do not finance a car, furniture, or a new card line before you apply. New debt raises your debt-to-income ratio and can lower your score at the worst moment.
If you spot an error, dispute it with the bureau now. Corrections can take weeks, and you want them finished before a lender pulls your file.
Step 2: Document Your Income When Your Job History Is Short
Lenders generally want to see about two years of employment or related education. Time in school can count toward that history, which is why a fresh degree with a signed job offer is more workable than people assume. You do not need two years at one employer.
For a job that has not started yet, Fannie Mae’s Selling Guide has provisions allowing an offer letter or contract as income documentation, but only under conditions, such as a start date within a limited window and enough reserves. The exact wording and thresholds get updated, so Duane Buziak confirms the current language against the guide and the specific program before telling a borrower they qualify. FHA and VA have their own versions of this rule, and individual lenders may add requirements on top.
Build this folder now:
- A signed offer letter showing salary, start date, and whether the role is full-time and permanent.
- Your first pay stubs, once you have them, covering at least 30 days if possible.
- A diploma or transcript showing the degree and completion date.
- Prior-year W-2s from part-time or internship work, plus last year’s tax return.
- Two months of bank statements for every account.
Two mistakes cause most of the trouble. First, changing jobs or fields mid-process. A new employer means new verification, and a switch from salary to commission or contract work can reset how your income is counted. Second, failing to disclose a start date that falls after closing. Lenders re-verify employment shortly before closing, and a surprise there can stall or kill the loan. Tell your loan officer the true timeline on day one.
Step 3: Calculate Your Debt-to-Income Ratio With Student Loans Included
Debt-to-income (DTI) is your total monthly debt payments divided by your gross monthly income, before taxes. Lenders look at it in two forms: the housing payment alone, and the housing payment plus every other debt. The second is the one that usually decides a graduate’s approval.
Duane Buziak’s framework takes three passes:
- List every monthly debt that appears on your credit report: student loans, car payment, card minimums, personal loans.
- Add them and divide by gross monthly income. A $350 student payment plus a $50 card minimum on $6,000 a month is 6.7% before housing is even counted.
- Add the projected housing payment and test the new total against program limits.
The student loan line is where programs differ. When your payment is in deferment, forbearance, or an income-driven plan, each program applies its own rule. As of 2026, FHA, VA, and conventional guidelines each handle it differently: some use a percentage of the outstanding balance, some accept a documented payment (including a documented $0 on certain income-driven plans), and VA has a rule for loans deferred beyond a set period. Suppose you owe $40,000 in deferment. A rule that counts 0.5% of the balance adds $200 a month to your DTI, while one that counts 1% adds $400. That gap can change your price range. Duane verifies the current rules in HUD’s FHA guidance and the Fannie Mae Selling Guide before running your numbers.
One tip: compare how a standard plan versus an income-driven plan changes your DTI before you pick a repayment plan, and ask your servicer for written proof of the payment amount. Do not stop paying your loans to free up cash. Missed payments hit your score and can disqualify you outright.
Step 4: Build Your Down Payment and Closing Cost Plan
The 20% rule is a myth. Match the program to the savings you actually have:
- FHA: 3.5% down with a credit score of 580 or higher, and 10% down for scores of 500 to 579, per HUD’s program rules (confirm current terms on HUD.gov).
- Conventional: some programs for first-time buyers allow as little as 3% down, with private mortgage insurance until you build equity.
- VA: no down payment for eligible service members and veterans. Duane pulls your Certificate of Eligibility electronically with your SSN and date of birth. For a second-tier (bonus) entitlement, take the county loan limit times 25% as the maximum guarantee, subtract the entitlement you already used, and multiply what remains by four to see your zero-down purchase limit.
- First-time buyer and down payment assistance (DPA) programs: availability varies by state and funding round, so Duane checks what is open in Virginia, Florida, Tennessee, Georgia, DC, North Carolina, South Carolina, and Maryland when you are ready.
Gift funds
Family gifts are allowed on many programs, but they need a paper trail: a signed gift letter stating no repayment is expected, the donor’s bank statement showing the funds, and the transfer into your account. Cash deposits you cannot source, or “gifts” that are really loans, get rejected. Move the money early so it seasons in your statements.
Closing costs
Ask about seller credits and lender credits when you compare offers. Structured correctly, they can create no-out-of-pocket closing options, though the rate or price trade-off should be on paper. Anyone promising your closing costs disappear is skipping the math.
Step 5: Duane Buziak Teaches How to Hunt and Compare Mortgage Rates
Watch. Compare. Save. The method is to request Loan Estimates for the same loan type, on the same day, with the same points, so the numbers line up. The CFPB’s Loan Estimate guide explains the layout: page 1 shows the rate, monthly payment, and cash to close, and page 2 breaks down closing costs. Compare those two pages line by line. Rate shopping is also safer than people think. The CFPB notes that multiple mortgage inquiries within a short window are generally treated as one for scoring, though the exact window depends on the scoring model, so confirm it at consumerfinance.gov.
Here is how the usual paths compare for a graduate:
| Loan path | Down payment | Mortgage insurance | Credit-score sensitivity | Fit for a graduate |
|---|---|---|---|---|
| FHA | 3.5% at 580+; 10% at 500 to 579 | Upfront and annual MIP | Lower; accepts thinner files and mid-range scores | Limited savings, modest score, higher DTI |
| Conventional low-down | As low as 3% on eligible programs | PMI, removable as equity builds | Higher; pricing improves sharply with score | Solid score, steady income, lower DTI |
| VA | 0% for eligible borrowers | No monthly MI; a funding fee may apply | Moderate; set by lender overlays | Graduates with military service |
| First-time buyer or DPA program | Varies; assistance may cover part of down payment or costs | Depends on the paired loan | Program minimums apply | Buyers who meet state program rules |
Duane Buziak works as a broker, not a retail lender, with access to hundreds of wholesale lenders. That includes direct access to PowerTPO, which is Lower LLC’s own wholesale subsidiary: the same underwriters, without a retail markup. Lower deserves credit for its digital application and pricing transparency, and retail names like Rocket, Veterans United, Movement, and NFM Lending are worth pricing for context. No one wins on rate every day, so the point is to see several real Loan Estimates side by side. Rates move daily, so any figure you see is only valid as of October 2026 and the day it was quoted.
Step 6: Run a Worked Example and Get Pre-Approved
Here is an illustration from Duane Buziak’s framework. Suppose you buy a $300,000 home in Georgia with an FHA loan and 3.5% down.
- Down payment: $10,500. Base loan: $289,500.
- Upfront MIP of 1.75% ($5,066.25) financed, for a total loan of $294,566.25.
- Illustrative rate: 6.25%, 30 years. Principal and interest: about $1,813.71.
- Annual MIP at 0.55%: about $132.69 a month.
- Illustrative property taxes ($3,000 a year): $250. Homeowners insurance ($1,500 a year): $125.
- Total housing payment: about $2,321.40.
With a gross income of $72,000 ($6,000 a month) and a $350 student loan payment, housing DTI is about 38.7% and total DTI is ($2,321.40 + $350) / $6,000, or about 44.5%. That may fit an automated approval, but it is not guaranteed. The 6.25% rate and tax figures are illustrative only, not a quote, and actual numbers depend on your credit, county, and the day you lock.
Prequalification is an informal estimate from what you tell a lender. Pre-approval means the lender has reviewed your documents and credit, and it carries weight with sellers. Bring your application, income documents from Step 2, asset statements, photo ID, and your soft-pull results. Check the loan size against the 2026 conforming limit on FHFA.gov: the baseline for a one-unit home is $832,750, higher in designated high-cost areas. Duane returns calls the same day and stays with you from pre-approval through closing.
Ten Questions Recent Graduates Ask Duane Buziak
Can I get a mortgage right after college with student loans?
Yes, you can get a mortgage right after college with student loans if your income and DTI fit the program. Lenders count your student payment in DTI but do not automatically deny you for it.
Do I need two years at the same job?
No, you do not need two years at one employer. Lenders generally look for about two years of work or education history, and an offer letter can help in certain cases.
Can a job offer letter count as income?
Yes, in certain cases a signed offer letter can count, with conditions on start date and reserves. Rules vary by program and lender, so confirm yours before relying on it.
How much down payment do I need?
FHA requires 3.5% down with a 580 score or higher, some conventional programs allow 3%, and VA can be zero down. Twenty percent is not required.
How are student loans counted if they are deferred?
Each program uses its own rule, often a percentage of your balance or a documented payment. Duane checks current HUD and Fannie Mae guidance for your case.
Does shopping for rates hurt my credit score?
Not much when done in a short window. The CFPB notes that multiple mortgage inquiries in a short period are generally treated as one for scoring.
What credit score do I need?
FHA can work from 580 for 3.5% down, while conventional pricing improves at higher scores. A thin file may need extra documentation.
Can my parents help with the down payment?
Yes, if the funds are documented as a true gift. You will need a signed gift letter, the donor’s statement, and a clear transfer trail.
What is the difference between prequalification and pre-approval?
Prequalification is an estimate based on what you report, while pre-approval is based on verified documents and credit. Sellers take pre-approval more seriously.
Does Mortgage Rate Hawk by Duane Buziak charge for a credit check or rate comparison?
No, the soft-pull credit check and rate comparison are free. A soft pull does not lower your score.
Keep the File Current Until You Close
Your approval rests on a snapshot, so recheck your documents and DTI after any job change, new loan, or major deposit. Even a small change can shift your numbers. Call Duane Buziak at Mortgage Rate Hawk by Duane Buziak at 804-212-8663 to start your pre-approval and rate hunt.
Your dream home is waiting. Don’t let the mortgage process hold you back. Get your free rate comparison and personalized loan match today, with same-day expert guidance to help you find the right path forward, whether you’re a first-time buyer or ready to refinance.
