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Are there mortgage loans for people with an unsteady employment history?

I was recently turned down for a mortgage because my employment history isnt consistent. I have worked as a freelancer for the past 7 years and have not stayed at one company for longer than a year because my contracts do not last that long. by goldy44482 from Dallas, Texas. Mar 5th 2015 Reply


When it comes to "conforming" mortgages (which is the only type of mortgage most mortgage companies can do) typically, employment is required to be "stable" with a "likelihood of continuance". As it relates to contract employment, the employment contract typically needs to be longer than a one year term. There are exceptions in certain situations and one lender might be a bit more aggressive in their judgment of "stable" than another so it certainly wouldn't hurt to apply with another lender and get a second opinion on your situation. As a freelancer, are you paid as a W2 employee (with taxes withheld from paychecks) or are you a 1099 contractor? This can make a difference in your ability to qualify. If all else fails and you simply don't satisfy the "conforming" mortgage requirements, there are other non-conforming options that very few mortgage companies can make. My company is one of the few that can do non-conforming loans with less restrictions. Feel free to contact me via phone, email, or text-message and I would be happy to hear more about your situation to see if we have some options for you. Sincerely, Derrick Novakowski | St. Mortgage Banker - 14 Years Experience | 214-455-1780 cell | dnovakowski@novalends.com

Mar 5th 2015
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Derick Condron (rightstartoregon)
#32 ranked lender in Oregon - 598 contributions

There may be options. I know a co worker has worked on similar situation in the LA area with people in the movie industry. I would talk to a few different lenders in the area to see if one can make the puzzle come together

Mar 5th 2015
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,722 contributions

This should not be a problem at all since your in the same "Industry" for 7 years, it's completely acceptable that you can change employers.. Your tax returns will be used to determine whether or not your income is stable.. Typically, I see people getting turned down for this reason when dealing with a local bank or credit union.. the problem with this is, you only have one lender, with one set of lending guidelines.. if you don't meet their qualifications, your denied.. the better option would be to contact a local mortgage broker.. brokers have an entire network of different lenders they have relationships with.. ( I have 21).. with each lender offering a different set of lending rules.. the more lenders, the more lending options and the greater likelihood that your loan will be approved. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Mar 5th 2015
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,930 contributions

I find it hard to believe that was the actual reason, although stability of income is a valid lender concern. Many people work in fields where they change frequently. As a freelancer, it appears you are working on a contract basis. It is the "contractor" element that would appear to be your issue. As a contractor, you are not an "employee". That is a stability of income problem. The general rule is lender require that we believe your income will continue a minimum of three-years. With a one year or less contract, your income will not continue. That is the issue. If they are paying you a W2 income, but you are not an employee, that is a problem. If you are being paid by a 1099, then you are self-employed, and you should not have a problem. I always advise people working on contract to do it as a self-employed basis to avoid this exact issue. For loans in MN, WI, and SD - visit www.JoeMetzler.com

Mar 5th 2015
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