Is there any way around the 2 year part-time employment requirement?

My husband and I moved to Austin this past January, for his job. I had to leave my part-time teaching job in Houston and search for employment in Austin. I found a part-time teaching job in Austin, and started working there this past February. They are considered part-time because they are half day preschool programs. I was a 5 day employee, but recently switched to 3 days as a co-lead. My income with them is still salary based. Since I'm 3 days there, I recently started working at another school in the afternoon, 5 days a week. When you put the 2 together, it makes full time hours. I have been in this industry for 5 years now. Do you think there is a lender out there that will consider my income, or do I need to find full-time employment?

1 Answer

Yes there is, particularly with an FHA loan. On an FHA loan the income you describe is NOT part-time income. Here are the guidelines from the FHA Lender's Handbook:

"When a borrower’s primary employment is less than a typical 40-hour work week, the lender should evaluate the stability of that income as regular, ongoing primary employment."

"Example: A registered nurse may have worked 24 hours per week for the last year. Although this job is less than the 40-hour work week, it is the borrower’s primary employment, and should be considered effective income."

So while I cannot say for certain that you qualify for a loan, the income you describe might be considered effective income on an FHA loan. Feel free to contact me if you have any other questions. Just click on my name below for the contact information.