From the perspective of the modern workplace, we live in a rapidly changing world. All but gone are the days of heading in 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, nine-to-five 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 represent 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 certainly 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 documentation that your lender will require. If you work more than one part-time job, your lender will want to see about two years worth 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.