Posted: Fri Aug 01, 2008 9:10 am Post subject: Seasonal Employment and Mortgage Approval
First time home buyers. My boyfriend has the better credit, I have a sligtly higher income. My employment has been steady (same job) and income has increased steadily over 4 years. My boyfriend held a sales job for 2 years, then for the past year has worked for the IRS as a Seasonal Employee.
I'm concerned that they'll view his seasonal employment as unstable (especially since he's only been at it for a year) and took a big pay cut when he left his previous sales job.
What are our chances of approval? Our income is good, just a little unstable on his end.
How favorably do manual underwriters typically look on Seasonal Employment?
Seasonal Employment will impact on you mortgage approval to certain extent. How much do you want to take out as a mortgage loan? Do you have more than 680 credit score and less than 40 present DTI ratio? How much both of you earn now?
tracic08, with the limited information you provided, in terms of how much of a loan you're seeking, it's not easy to give you a definitive answer. however, seasonal employment is not necessarily a hindrance; depending on the overall circumstances. you noted that your boyfriend's credit is good, and that will help a great deal.
frankly, if you're buying within your individual qualifications, and his income is purely supplemental, there ought not to be any difficulty. of course, if you're in need of his (apparently) somewhat limited income to qualify, that might make for an issue.
truly, more information is needed for us to give you a more definitive answer. _________________ George M. Akerley
Senior Loan Officer
Freedom Mortgage Corporation
37 Jerome Avenue
Bloomfield, CT 06002
860-221-5044
We're applying for $138k. His income is needed to qualify, even though I make more. His seasonal job is through the IRS, so it's about 7-9 months a year, and he get's re-hired each year. More stable than, say, construction day labor of course.
His credit score is about 685, mine 645. Our combined yearly NET income is about $52,000.
his seasonal employment is probably as stable as most people's full-time, but did this just begin in 2008? i think the timing is critical, as well as being able to determine whether he's better off with this new job than he was at his previous sales job. a strong explanation letter, stating how much more beneficial this job is; along with verification of the previous employment might just convince an underwriter to go with it.
your score, at 645, isn't so bad. frankly, you'll both be best served by seeking an fha mortgage rather than a conventional loan. pricing is better with fha generally.
mortgage underwriting is based on gross income, not net, though from the number you tossed out, your income would seem to be sufficient (depending on other debt, of course). _________________ George M. Akerley
Senior Loan Officer
Freedom Mortgage Corporation
37 Jerome Avenue
Bloomfield, CT 06002
860-221-5044
Yes, we did provide employment verification of the previous job, with W-2's as well as this job.
He began the IRS job in February 2007, worked until August 2007, was furloughed, collected unemployment for 5 months, then went back to work at the IRS (same job) when the season started in February 2008, and is still working there now... sound stable enough, you think?
it sounds nice to me, but 2008 has brought us an awful lot of changes in this wacky industry. underwriters are especially conservative compared to what was in the past (and i can definitely say that, since i was formerly an underwriter; and as little as a year and a half ago).
perhaps his supervisor can embellish the stability aspect of his job by stipulating that the likelihood of his being recalled regularly is good. let's hope so. _________________ George M. Akerley
Senior Loan Officer
Freedom Mortgage Corporation
37 Jerome Avenue
Bloomfield, CT 06002
860-221-5044
tracic08
