(Closed) Home loan for temporary employee?

posted 4 years ago in Home
Post # 3
Member
3281 posts
Sugar bee
  • Wedding: June 2014

It depends. My FI has a temporary job working 50 hours most weeks but they did not consider that job because it is temporary and he’s been there 1.5 years. Luckily he has another job and I have 3 part time jobs. Some loans require full time jobs (FHA) most conventional loans just require permanent work for 2+ years (my part time jobs). Your husband should be able to qualify for a loan in his name with you as a cosigner but it is unlike your income with be considered.

Post # 4
Member
10368 posts
Sugar Beekeeper
  • Wedding: September 2010

I’ll also say it depends. I was a contract employee when we started our house hunt, and got hired on permanently while we were in the middle of everything. They did not blink an eye because I already had 4 years work experience in the same field, and was making the same salary at my contract position as I did in my permanent ones.

There will be so many things that are just situational that some banks will care about and others won’t. If one bank is bothered, try another. It isn’t impossible!

Post # 5
Member
10368 posts
Sugar Beekeeper
  • Wedding: September 2010

Oh, and we got a conventional loan at a rock bottom rate through Everbank, and they said we would have been approved either way. We did put 20% down and had credit scores over 800, and my husband makes about 30% more than me at his permanent job – not sure if that helped to sway their decision or not.

Post # 6
Member
329 posts
Helper bee
  • Wedding: June 2010

We bought our home last year and were in the same position. Our credit union didn’t count my salary at all because I’m technically a part-time employee but work full-time hours, like you. I hadn’t thought of that being an issue before either. I agree with crayfish though, it probably just depends on the financial institution.

In our case, we ended up just going on my husband’s salary alone. They qualified us for more than we could truly afford on just his salary, but with both of us working it’s very affordable. You may find that’s the same case for you. Had we both been listed they would have tried to give us a loan much larger than we would have been comfortable with.

Post # 8
Member
3281 posts
Sugar bee
  • Wedding: June 2014

@KateByDesign:  We also have scores in the 700s and zero debt. FHA will definitely not consider your income and conventional will want at least 10-20% down. Even with our savings and 5 jobs we had to have FI’s parents co-sign and our house is suuuper cheap. I’d talk to multiple banks about multiple loan types and go from there. 

Post # 9
Member
10368 posts
Sugar Beekeeper
  • Wedding: September 2010

@KateByDesign:  Anything 750 or above makes you eligible for the best rates. It’s all semantics above that. If you’re over 700, you’re in good shape :-). At least that’s what our loan officer said!

Brokers are usually only a good bet if you have very special circumstances, but you guys may benefit from that. They do often cost $, so be prepared for that. If you feel comfortable shopping an FHA loan on your own, i’d really go that route. It’s time consuming, but could end up saving you a few thousand dollars (at least that’s what we were quoted for brokers, but if homes where you located are less crazy expensive than in San Fran, that fee might be lower). If you find a no fee broker, they typically make their money in comission, which can mean that they are steering you to who pays them the most, not what’s cheaper for you, so it’s hard to know where you’re getting a better deal, if that makes sense.

Post # 12
Member
2622 posts
Sugar bee
  • Wedding: November 1999

@KateByDesign:  I think it is a good idea to get approved for a loan on your husbands salary alone anyway. As you said you have had to quit your job before so being able to afford your home on one salary (no matter who is earning it) is a very prudent decision.

 

Post # 13
Member
3574 posts
Sugar bee
  • Wedding: September 2011

If you are paid on a W-2, this will be a non-issue.  They won’t even know you are a “temporary” employee.  

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