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Mortgage for Part-Timers

Mortgage for Part-Timers

How long are you required to work at a part-time job before you can include it in your mortgage application?

To include income from a part-time job when applying for a mortgage, most lenders require at least a one-year history of working at the job. Depending on the type of job, income stability, and other factors, you may be required to have a two-year employment history for a part-time job. The ability to include part-time income in your loan application is important because it may help you qualify for a larger mortgage. In other words, the higher your gross monthly income, the larger the mortgage you can afford. Fannie Mae, the organization that sets mortgage qualification policies followed by almost all lenders, determines the part-time job income guideline. I’ve included a specific requirement below that addresses applicants’ part-time employment.

As you can see, having two years of work experience is preferable, but lenders will accept income from part-time jobs with at least one year of experience as long as “positive factors” are present. A good-to-excellent credit score, a larger down payment, significant financial resources, and consistent income from both full-time and part-time employment are examples of positive factors.

Please note that you must provide your most recent W-2 and paystub for the part-time job when applying for a mortgage to verify your current employment and income level. If the lender requires a two-year work history, instead of one, you must provide W-2s for the previous two years.

In order to meet general mortgage requirements, you must also provide your tax returns for the previous two years. Lenders are usually required to call your employer to verify your employment. In some cases, providing a letter from your part-time employer stating that your job is permanent rather than temporary is also beneficial. The letter should also include the frequency with which you are paid, your annual income, and the type of compensation you receive (hourly wage, salary, commission, or bonus).

We recommend that you contact multiple lenders in the table below to understand the requirement that applies to you because the mortgage guideline for part-time job income involves a certain amount of discretion — either a one or two year work history requirement. The best way to save money on your mortgage is to compare loan terms from multiple lenders.