Part-Timer? No Problem!

From the perspective of the workplace, we live in a rapidly changing world. All but gone are the days of going to the office five times a week, for a standard paycheck and two weeks paid vacation. In fact, a large portion of the workforce is made up of individuals whose income comes from working one or more part-time jobs, rather a traditional full-time, 9-5 gig.

While some assume that those working part-time are mostly retirees or college students, the reality is that - according to the Bureau of Labor Statistics - more than 32 million Americans work an average of 34 hours or less a week. A ‘part-time’ work week can actually mean one that’s quite comparable to full-time, in terms of both hours and pay.

But the question is: can you qualify for a mortgage on part-time income alone? Mortgage lenders will look at your work history and income, regardless of whether you have a full-time job, or one or more part-time jobs. So yes, you can qualify for a mortgage even if you only work part-time. Now, it’s no guarantee that you will qualify for a mortgage, but it does not disqualify you from loan eligibility, either.

Of course, lenders will need documentation of your income and work history, regardless of whether you work part or full-time. If you do work part-time, there may be some additional docs that your lender will require. If you work more than one part-time job, your lender will want to see about two years of history for your additional part-time job (i.e., your second part-time job, or the part-time job on top of your full-time job) before they will count your income towards mortgage-qualifying.  

The reason is they’ll want to ensure that they are basing your mortgage on a true picture of your income, rather than a period of where you worked part-time for only a short span (for example, a second job at the holidays).

Lenders also want to see that the income they are basing your mortgage on is sustainable – eliminating the possibility that you may have trouble repaying your mortgage in the event that you drop the second part-time job.

If you only work one part-time job, there may be zero additional documentation requirements from your lender than if you work full-time. If your part-time job generates the income necessary to satisfy the lender’s income requirements, AND the lender can determine that the income is stable and likely to continue, they can treat a part-time employed applicant the same way they treat a full-time applicant.

As you can see, part-time workers don’t need to discount their dreams of home ownership. Many part-time people are closer to home ownership than they know! Call Midwest Lending, and we’ll show you exactly how much house you’ll be able to afford.