I am single and have been in my condo for 10 years. I have refinanced twice and would like to do so again before the rates go up. I have been steadily employed for almost 3 years, just completing a full year at my current job. I started on contract and was later asked (corporate directive) to work for them through a temp agency. I know that getting a new loan while working through a temp agency is almost impossible. I've found that my only option is to refi with my current mortgage holder. If I was able to go back on contract for a term of at least 3 yrs, would this open up my refinancing options? My credit scores are excellent (800+), I have no debt other than my mortgage and a small amount borrowed with a HELOC. My bills are paid on time, every month, and I have no credit card debt.
Yes you can, income has to extend at least 3 yrs from the closing date, so the contract should be longer than 3 yrs since you will be verifying this prior to closing. Are you paid with W-2 or 1099 Income? If you are self-employed in your position and have a 2 yr history of filing your returns this way, you can also qualify as a self-employed individual in your field, and the 3 yr contract won't be necessary, but if not technically self-employed(Sch C Income)and you recieve pay checks from the Temp Agency,you need at least the 3 yrs or a full time position. Thanks, Dan
Lenders are interested in steady income with the future looking just as steady. Yes a contract would be better, but a long term working relationship with one company is good too.
Your best bet is to take your excellent credit and low debt to income ratio and talk to a few lenders and see what they have to say. Refinancing at these low rates (if it is at least 1/2 of a percentage point below your current rate) would be a smart move.