If you’re seasonally employed and work only part of the year, you may have trouble qualifying for a mortgage. Whether your work is truly around a season, such as landscaping or snow removal, or something you do on the side, this type of employment can be categorized as sporadic.
This won’t disqualify you from a mortgage, but it does make the process a little tricky.
Documentation You Need to Provide
You need to prove to your mortgage lender that your income is reliable, even if you do only work for part of the year. For FHA and VA loans, you need to provide documentation that you have worked for the same employer for the past two years, or that you have worked in the same line of work for the past two years. Your employer also must provide documentation that indicates you’ll be hired during the following season.
Unfortunately, if you’ve been working less than two years, your income will not qualify you for a mortgage. Even if you have been employed for two years, you might not qualify if your employer can’t prove there is a reasonable expectation that you’ll be hired during the next season.
What Happens If You Can’t Prove This?
Those who cannot prove their income reliably over the past two years will be ineligible for a mortgage, but can reapply once that information becomes available. If you find yourself in this category you have a few options. The simplest answer is you can choose to wait and reapply.
If you’re looking for a mortgage now, you have two options:
- Verify that you have provided all sources of income. If you receive Social Security benefits, any type of interest income, have a second job or if you receive unemployment benefits during part of the year, you can use these to help you qualify.
- Consider applying for a mortgage with a spouse, family member or even a friend. Adding another person to your application may increase your chances of qualifying, as lenders will take both parties’ credit scores and incomes into consideration. Better chances of qualifying, splitting the costs of home ownership and having another person helping you through the process are all benefits of owning a home with another person.
Having the right documentation can be the difference between qualifying for a mortgage and purchasing your own home or not. Before beginning your application, make sure you have the last two years’ W2 forms, proof of compensation, and verification from your employer that you’ll be employed next season.
If you believe you do qualify, beginning the approval process is fast and simple with Rocket Mortgage. If you’re not sure if you qualify, contact a Home Loan Expert at (800) 251-9080 to discuss your options today!
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