Part Time Income To Full Time Income
There are strict rules when it comes to part- time income and mortgage qualifications. In order for part- time income to be used, the mortgage loan applicant needs two years of consistent part-time income and the likelihood of the part-time income to continue for the next three years. Same with overtime income. In order to for overtime income to be counted as additional income, the mortgage loan applicant needs to have had overtime income for the past two years and the likelihood for overtime income to continue should be for the next three years.
Any regular job that a mortgage applicant works at least 30 or more hours per week is considered a full time job and the income can be used as full time income. However, a minimum of 30 hours is needed every week in order to be considered full time income.
Two Part Time Income: Two Jobs
There are cases where a mortgage loan applicant has two part-time jobs. If you have two part-time jobs and would like to qualify for a mortgage loan, you need to have been employed by the two jobs for at least 24 months, or 2 years. If one of those two jobs have minimum work hours of 30 hours per week, that is considered a full time job so that job can be used as a full time job and the other part-time job can be considered part-time job as long as he or she has worked there for a least two years.
Going From Part Time Income To Full Time Income
If you currently have part-time income and had part-time income for the past couple of years and are going to full time income and full time status, your current full time income can be used to qualify for your mortgage loan. As long as you have had the part-time income for at least 24 months, there is no seasoning requirement with your full time job in order to have your full time income used. However, if you have held your part time job and had gaps in employment and multiple jobs, you need to have been in your full time job for at least six months in order for the full time income to count towards your mortgage income qualifications.
Going From Full Time To Part Time Or 1099 Income
If you had a full time job and no longer work full time and changed jobs to a part-time job or are a 1099 wage earner, your part-time income and/or 1099 income can only be used if you have had a two year employment history. On the flipside, if you were a 1099 wage earner but you changed your job to a W-2 job, you can qualify for a mortgage loan and your new W-2 income can be used. You need to provide 30 days of paycheck stubs prior to closing your mortgage loan.