Can We Get a Mortgage if We Are Both Working Part-Time?

You may qualify for a mortgage loan.

Part-time wage earners have an opportunity to purchase a home if certain mortgage underwriting conditions are met. You can apply for a home loan with your bank or a variety of mortgage companies. If you have sufficient income, credit and funds for a down payment, you may qualify for a mortgage while working part-time.

Part-Time Income

Part-time income may be used toward qualifying for a home mortgage loan. Applicants must provide an earning history reflecting part-time income. Generally, an underwriter should request recent pay stubs, W-2 forms and tax returns from each applicant. The underwriter calculates each applicant's average monthly income. The average monthly income for each part-time applicant is combined to obtain your gross monthly income.

Credit

Credit is a primary concern for mortgage lenders. An applicant that pays his bills on time to a variety of creditors, such as an auto finance company, several credit card issuers and a department store might present a favorable risk for a lender. However, applicants who have made recent late payments on small balances give underwriters reasons to pause. Before making a sizeable request for a home loan, you should demonstrate a solid payment history to your creditors for 24 months or more.

Funds

An applicant's down payment funds could play a significant part in the loan approval process. Applicants who have saved $15,000 toward the purchase of a new home might qualify to buy a home that costs $150,000. Essentially, $15,000 represents a 10-percent down payment on a home that costs $150,000. The buyers have a 10 percent down payment, however the lender would need to supply the balance of the purchase price, equaling $135,000 and representing 90 percent of the purchase price, not including closing costs, appraisal fees and inspection fees.

Consideration

If your part-time income meets the debt-to-income ratio requirements for the home loan you need and a lender has provided credit approval, you might be able to obtain the new home that you want to buy.

References

• Financial Web: A Guide to FHA Loan Income Qualifications