Mortgage lenders consider various factors when deciding if you qualify for a home mortgage. One consideration is your employment record. Most lenders prefer full-time workers with permanent employment. Although home lenders have strict guidelines, they also consider temporary employees who meet certain criteria. It is possible to get up to 90 percentage of your home loan with proper documentation to show your ability to repay your home loan.
Home lenders consider an employment history of more than 12 months when you apply for a mortgage. However, if you have always kept temporary employment in some industries it is possible that you can sustain a successful application for a mortgage. A reliable history of temporary employment in law, agricultural, accounting, IT and education industries is likely to add to your repayment evaluation. You may also enhance your chances of your mortgage application by enrolling in an employment agency. Mortgage lenders are likely to consider such applications because agencies are likely to help you get jobs quickly if your current one ends.
Review your debt burden before submitting your mortgage application. Mortgage lenders require that your debt commitment should be less than 30 percent of your gross monthly income. Provide documentation that will show your income such as tax returns and bank statements. If you have monthly commitments that are likely to hinder your application, such as student loans, car loans and credit card bills, work toward reducing the balance to give you a healthy debt-to-income ratio.
Lenders consider permanent employees as safer bets for mortgage. As a temporary worker, you can enhance your rating by saving some money to pay for a percentage of the mortgage. For instance, instead of asking for 100 percent of the mortgage, you can apply for 80 percent and support the remainder with your savings. This will decrease your loan-to-value ratio because mortgage lenders will require you to pay for a mortgage if your loan-to-value ratio is higher than 80 percent.
Obtain your credit report from all three credit bureaus and make sure that the reports are accurate. If not, ask the credit bureaus to remove errors from your reports. Understand what your credit score means and provide it if it only speaks well of your credit rating. The higher your credit score, the better your chances of obtaining a mortgage.
- Home Loan Experts; Temp/Agency Worker Home Loan; How Can Agency & Temp Workers Get a Home Loan?
- Lending Tree: Minimum Requirements to Qualify for a Mortgage
- Employment Mortgage: Temporary Worker Mortgage
- Federal Deposit Insurance Commission. "203(b) Mortgage Insurance Program," Pages 21-22. Accessed Oct. 10, 2020.
- Federal Deposit Insurance Corporation. "Homeowners Protection Act," Pages V–5.1 and V–5.2. Accessed Oct. 10, 2020.
Diana Williams began her writing career in 2004. Her work has appeared in "Hermitage Securities " magazine, among other publications. Williams holds an M.B.A. from the University of Montreal's William Burt School of Business, as well as a diploma in journalism from Grant McEwan College.