Mortgage loan approval: Part-Time Income?

There are alternative financing options availabe. FHA allows you to use this type of income even though you have not been at work for two years. In the FHA 4155 guidebook it states - part time work less than two years may be used provided that the lender justifies and documents that the income is likely to continue. It further continues to note what FHA considers "part-time" work - Note: For qualifying purposes, “part-time” income refers to employment

taken to supplement the borrower’s income from regular employment; parttime

employment is not a primary job and it is worked less than 40 hours.

In your question you stated you have a set amount of hours and pay rate, this should satisfy an underwriter for an FHA loan. Also, your schooling to get your nursing degree would be considered in the employment equation.

Good luck!

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RE :Mortgage loan approval: Part-Time Income?

Hi! I am trying to start the process of getting approved for a mortgage loan. My husband works full time (same job for over 2 years) and I graduated from college this past summer. I work part time as a Registered Nurse at a local hospital. Part time at this hospital is a regularly scheduled 45 hours biweekly (as stated in our union contract). Since this is my primary job (not seasonal or supplemental) and I have a guaranteed amount of hours and hourly pay rate, can we use my income right away for qualifying? Or would I need to wait two years like I have read about for some part time jobs? Thank you for your time!

Follow 4 answers

no just do not place it in as income but know this that you will need to write a letter of explanation as to why your taxes differ from what you say you are making if self employed part time for over 2 years. Or claim the income but make sure the loan officer only figures the home based on salary and not total income I am a mortgage banker in TN & KY

Your income is based upon your income, and not how many hours you perform for your income.

For example, if my job generates me $9,000 per month, but I only work for two hours to earn that income, then my income is $9,000 per month.

If a mortgage company is giving you the run-around, find a different mortgage company. Right now is a difficult time to get a mortgage in America.

However, is what I would do is WAIT to try and get a mortgage, SAVE money in a joint saving account, and BUDGET all your expenses down to bare minimum. Why? because the next few years will remain a Buyers market and you can purchase your first home for less than $15,000 cash.

How? There are a crippling amount of foreclosed homes in America. Property taxes aren't getting paid, banks are sitting on houses that can't sell, and mortgage lenders are scared as hell to loan any money unless you have VERY high credit with lots of assets to back the loan.

My wife and I just purchased our first home in August 2011. The property is worth $90 thousand dollars. But that isn't what we paid for it. We purchased it from our local Sheriff's Department as a Tax Foreclosure property and only paid $5,670 (five thousand, six hundred and seventy dollars)

We saved a few thousand dollars, shopped the market daily, went to a few property auctions. At the right time we placed a bid at a live auction. I tell you, there were hundreds of houses for sale, and NO ONE BIDDING on them. We were the only bidder on our house. If we had $12,000 that morning, we could have walked away with 2 homes, free and clear of any mortgages or debts. But we only got one.

Next month I'm getting ready to purchase another house for $5000 cash. I'll need to put in another $2,000 in some cosmetic work, but then the house will be paid for free and clear. I'll rent the property out, make my money back and then sell it when the market goes up.

Save ... budget ... save ... budget ... save ... budget ... shop.

You have to wait for two years because lenders require part time employment to be for 2 years to be considered as consistent income.