Snikrep, Home Buyer in 78612

Can I obtain a home loan if my employment is contract?

Asked by Snikrep, 78612 Wed Jun 9, 2010

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Rudy McDowell, Mortgage Broker Or Lender, Bloomfield Hills, MI
Thu Jun 10, 2010
Hi, Snikrep

Great responses to your question. I would just like to clarify a couple of things: Whether with or without a formal contract, whether W2 or 1099/self employed, regardless of how long or short you've been with your current employer, you always need to show a 2 work history via W2s and/or Federally tax returns. Only exception is if your fresh out of college and been employed for less than 2 years as a result. In that case, however, so long as you're employed in the line of work you went to school for, your time in school counts towards your work history.
0 votes
Brad, , 77058
Thu Jun 10, 2010
Yes. Are you receiving a W2 or a 1099? If you receive a W2 then your contract will not matter and you will qualify under standard employment underwriting requirements. If you receive a 1099 then you will need a 2 year history as a contract employee and the contract must state the position, start date and you will need to provide the most recent paystub.

Your situation may have other variables not stated so talk with your Loan Officer about the specifics.

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0 votes
Don Tepper, Agent, Burke, VA
Thu Jun 10, 2010
Talk to a lender.

However . . .

I don't see why not. After all, people who are "employed" without a contract are what's called "at will" employees. That means that the employer (or employee) can end the employment arrangement at any time. There's no protection at all. (Sure, there are EEO and other protections, but there's nothing saying that if you work at the local flower shop or at a gas station or as a secretary/administrative assistant in a big company, that you can't be terminated tomorrow. And usually without cause: You can just be fired.

A contract at least is clear about the length of employment and the terms under which it may be ended.

So, see a lender to find out about financing in your own situation.

Hope that helps.
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Gerard Dunn, Agent, Chevy Chase, MD
Thu Jun 10, 2010
As long as you have a 2-3 year history as self employed - it should not be an issue. The lender will qualify you based upon NET income after expenses.
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George, , USA, Mobile, AL
Thu Jun 10, 2010
yeah but low case ... if you want the loan in large then you have to be permanent.
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Richard Schu…, Agent, Los Angeles, CA
Thu Jun 10, 2010
You need to talk to a lender and explain your situation. They will be the person who can tell you if you can get a loan, and what sort of loan you can get. FYI I have seen buyers get loans with contract employment, though it is a bit more tricky.

Best of luck,
Richard Schulman
Keller Williams Realty
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