Working Two Full-Time Jobs To Qualify For Mortgage
In this blog, we will cover working two full-time jobs to qualify for mortgage. The 2008 Real Estate And Financial Meltdown affected millions of hard-working Americans. Countless self-employed business owners were forced to shut down the businesses they had had for many years.
Millions of hard-working Americans have lost the jobs and careers they have held for many years. Some lost jobs they worked for decades and were forced into unemployment. Entire industries went through complete changes, and some industries, such as the subprime mortgage markets, went obsolete.
The real estate, construction, and mortgage lending markets were greatly affected. Real estate investors who always had access to financing and bridge loans were left with no means of getting financing to continue with their businesses and expand their businesses. In the following paragraphs, we will cover working two full-time jobs to qualify for mortgage.
The Halt of The Sub-Prime Mortgage Markets
The sub-prime mortgage markets employed hundreds of thousands of employees and shut down due to new mortgage regulations and laws. These folks needed to find employment in different sectors of the mortgage lending industry or leave the mortgage field altogether. Mortgage loan officers were forced to adhere to new mortgage regulations about licensing. They now had to take a 20-hour pre-licensing mortgage educational course and the national NMLS examination to remain in the mortgage business as mortgage loan originators.
However, many old-timers who have been in the mortgage business for decades and were higher in age had a difficult time passing the NMLS mortgage loan originator’s national examination. They were eventually forced out of the mortgage industry due to not being able to pass the national NMLS mortgage loan originator’s examination. Bankruptcies and Foreclosures soared to a historical high.
The Great Recession of 2008 was more like the Second Great Depression of 2008 than the Great Recession of 2008. Millions of homeowners in all parts of the United States lost their homes. A large percentage of homeowners had homes where their market values tanked so much that their loan balances were higher than the value of their homes. The good news is that non-QM loans are back in full force. No-doc loans, DSCR mortgages, stated-income loans, and bank statement loans are now back. Home prices have skyrocketed by 40% in the past few years. Rates are now over 5.5% when just a year ago they were in the mid 2.0%. Are we going to have another housing crisis?
Are We Going To Have Another Repeat of The 2008 Financial Crisis
Short Sales and Deed-In-Lieu of Foreclosures were common things. Many Americans in the workforce had difficult times in not just getting new jobs in their fields but just jobs. A large percentage of the unemployed were forced to find jobs which they were overqualified for. Or had to take on more than one part-time job and barely make ends meet. Working two full-time jobs to qualify for mortgage is possible. However, there are mortgage regulations and requirements for working two full-time jobs to qualify for mortgage.
How Underwriters Qualify Borrowers Working Two Full-Time Jobs To Qualify For Mortgage
Many Americans have two full-time jobs and have gotten used to having two full-time jobs to support their household. Many Americans have recovered or are still recovering after the Great Recession of 2008. Those who have filed for bankruptcy are now back on their feet and have started to re-establish their credit.
Those who have lost their homes through foreclosure, short sale, or bankruptcy are now ready to become homeowners again.. FHA loans are by far the most popular mortgage loan program out today. Homebuyers only need a 580 FICO credit score to qualify and only a 3.5% down payment on a home purchase. HUD also allows up to 6% in seller concessions to be given to the home buyer by the home seller. This is so the home buyer does not need to worry about coughing up the closing costs.
All they need to worry about is the down payment on the home purchase. Homebuyers who can afford a new home mortgage payments and housing expenses but lack the down payment on a home purchase can get gift funds for the down payment. HUD allows a home buyer to get 100% gifted funds by a family member to be used for the down payment of their home purchase.
Lending Guidelines on Working Two Full-Time Jobs To Qualify For Mortgage
Income and credit are the two main deciding factors when mortgage underwriters review a borrower’s application. There are specific income underwriting guidelines on how mortgage underwriters qualify for income. Two full-time jobs to qualify for mortgage can be used. This holds as long as the borrower has had both full-time jobs to qualify for mortgage for at least two years.
If the borrower only had one full-time job for two years and the other full-time job for less than two years, then only one full-time job can be used. The higher of the two full-time jobs can be used to qualify for an income. The borrower can use the full-time job that he or she has been working for less than two years if that job has a higher salary or hourly wage as his or her qualified income. This holds true as long as that full-time job is likely to continue for the next three years
However, the other full-time job cannot be used. The two full-time jobs to qualify for mortgage can be used only if the borrower has held both full-time jobs for at least two years.
Other Income To Qualify For Income
Part-time, bonus, and overtime income can be used as qualified income. It can only be used if the borrower has had at least a two-year history of earning part-time income, bonus income, and overtime income from the same job. There needs to be a likelihood to continue for the next three years. Verification of employment will be required by his or her employer.
Frequently Asked Questions (FAQs)
- Can I use income from two full-time jobs to qualify for a mortgage? Yes, you can typically use income from two full-time jobs to qualify for a mortgage, provided you meet the lender’s requirements.
- Do I need to work both jobs for a specific period before applying for a mortgage? Lenders may require a consistent history of working both jobs for at least two years to consider the income stable.
- Is there a minimum income requirement when using two full-time jobs to qualify for a mortgage? Lenders often have minimum income requirements, however, these requirements can fluctuate depending on factors like your location and the specific mortgage product you’re applying for.
- Do both jobs need to be in the same industry or related fields? It’s not always necessary for both jobs to be in the same industry, but having related fields or transferable skills can strengthen your application.
- How do lenders verify income from multiple jobs? Lenders typically verify income through pay stubs, tax returns, and employment verification letters from your employers.
- What is the debt-to-income ratio, and how does it affect mortgage approval? The debt-to-income ratio, often abbreviated as DTI, represents the connection between your monthly debt payments and your monthly income payments. Lenders use this to assess your ability to manage mortgage payments alongside existing debts.
- Can I use income from a part-time job in addition to two full-time jobs? Earnings from part-time employment may be taken into account. Still, lenders may require a consistent history of part-time employment and may apply different rules.
- Are there tax implications of working two full-time jobs for mortgage qualification? There can be tax implications, such as a higher tax bracket, which could impact your net income and, subsequently, your mortgage eligibility.
- How does working two full-time jobs affect my work-life balance and well-being? Balancing two full-time jobs can be challenging and may impact your well-being and work-life balance. It’s crucial to consider the physical and mental toll.
- Should I consult a financial advisor before committing to two full-time jobs for mortgage qualification? Consulting a financial advisor is advisable to assess the overall financial implications and ensure it’s the right choice for your long-term financial goals.
- What are the advantages of working two full-time jobs to qualify for a mortgage? The primary advantage is increased income, which can improve your mortgage approval chances and allow you to afford a more desirable home.
- What are the potential drawbacks of working two full-time jobs for mortgage qualification? Drawbacks include the potential for burnout, reduced quality of life, and limited time for personal pursuits and family.
If you have any questions about qualifying for a mortgage due to working two full-time jobs, irregular income, self-employment income, part-time income, bonus income, and overtime income, please contact Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com. We are available seven days a week, evenings, weekends, and holidays.
