Being a seasonal employee means that you only work a part of the year; which can cause issues when your trying to qualify for a mortgage, or when trying to refinance your home. This doesn’t completely prevent you from getting a mortgage approval, but it does cause you to have several more hoops to jump through.

You will first need to prove to your lender that your income is reliable, even if you only do this type of work for part of the year. In order to qualify for a purchase or to refinance your home mortgage you will have to show documents that show you have worked in this same job for at least 2 years. Supporting documents like tax returns and W-2’s for the past 2 years are the common documents lenders are looking for. They will also want to see a letter from your employer that supports them hiring you back for the upcoming season. 

If there is a chance that you have not been at your current employment for at least 2 years, then your income won’t qualify for a mortgage. If, for whatever reason, your employer can’t prove that you’ll be hired during the next season, then this will also prevent a mortgage approval. Income verification is one of the most important factors when a lender is examining your qualifications.

If you are unable to prove income reliability you will be able to reapply once your information becomes verifiable. This is the simplest of options. If the property is a must have and you are seeking any possible option to make it happen, then you can consider applying with a spouse or family member (and in some cases even a good friend). Whenever you add another person to the mortgage this can increase your ability to qualify, bump up your borrowing amount quite a bit and let you split the costs of borrowing. There are quite a few benefits when purchasing alongside someone else instead of going at it alone.

If this is the route you are about to take, you should gather the appropriate paperwork beforehand. This includes 2 years of tax returns, pay stubs, W-2 forms, and any other proof of compensation. Bringing your letter from your employer that guarantees your employment for the upcoming season is a pivotal point whether your applying solo or with someone else. 

Is There A Difference Between Part-Time Income And Seasonal Income When Applying For A Mortgage?

Seasonal and part time income might sound similar, but for the purpose of a mortgage qualification your lender sees them to have big differences. Working part time is usually defined by working for an employer for less than 40 hours a week. It is easier to qualify for a mortgage with part time work because you are far more likely to receive continual income.

When you are considered a seasonal worker, you do jobs that are only done when they are needed, and they consider this sporadic. Lenders basically view it as part time work. Seasonal work is only done at certain times of the year and does not provide steady reliable income.

If lenders are going to consider your seasonal income they will want to see if there is regularity and stability within your employment and that you can provide documents to prove that you have either worked for the same employer for 2 years or worked for 2 different employers in the same field. Your lender is likely to call your employer to verify this information. 

Some people who collect EI during the season when they have no work will be able to use the EI income on their mortgage application. They will just need to show 2 years of working seasonally and collecting EI compensation for the past 2 years. 

Lenders really appreciate and value consistency. They want to be able to have assurance that you are going to continue bringing in this income. No matter what you do in life, stick with it long term, as this is what lenders look for and this is what will support your future. We look forward to working with you.