What types of employment can be used to qualify for a mortgage?

You can be approved for a mortgage with a part-time job or a seasonal job as your main source of income. Your lender may not require you to show 2 years of work history, but they do need to gather sufficient evidence to show that you will have a long-term income stream. Conventional loans are arguably the most popular type of mortgage. They generally require at least two years of work history to qualify.

When you apply for a mortgage, your lender must be reasonably certain that you will be a responsible borrower. Loan insurers look at factors such as loan history, credit rating, income and employment. Employment is important enough that lenders typically require two years of the same job to demonstrate job stability. However, that's just a general rule and not the only consideration that mortgage lenders make.

Generally speaking, if you recently changed jobs in a company or moved to a higher-level position in a new organization, that's less of a concern than if you started a job in a new field or if you have a six-month employment gap. In many cases, even people without two years of work history can still get a mortgage. For example, a recent college graduate might qualify based on a verified job offer and a high salary, or members of the armed forces who were recently discharged often receive an exemption to start working similar to what they did in the military. You may even be able to get an exception if you have a medical report about a medical condition that prevents you from working.

Even if you're not in any of these situations, you may be eligible for a loan based on a high credit score or a low debt-to-income ratio. The specific employment requirements for a mortgage may vary depending on the lender and the type of mortgage you are applying for. Mortgage borrowers don't have to have a 2-year work history with the same job to qualify for a mortgage. Let's discuss how lenders view employment and how a new job or a change of profession could affect your mortgage rating.

Whether you have your first job or have changed your profession, you will generally follow the same underwriting process and will have to meet the same mortgage qualification requirements as other borrowers. Requirements can vary from lender to lender, so it's important to go through the pre-approval process with your mortgage lender to make sure you have everything in order and know how much you can afford the house before you start buying your new home.

Sara Pucio
Sara Pucio

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