Anyone know how income is calculated? See I want to buy a home in say 6-9 months (fixing credit soo close 609 middle score). Anyways Ive had the same job almost 6 years, but recently went from full time to part time. Right now im VERY part time (12 hours a week) how long should I be back at more hours before I apply? Say Im working 35 hrs/week for 3 months would they use that income then?
I believe the standard is 2 yrs of employment history. You would need to prove that your income is stable enough to afford the cost of the mortgage. Having the same employer may help the cause if you can get them to verify in writing that your hours would be steady once they are at full time again. Others may be able to provide their own experiences, but that is my take on it.
I just went thru this with my wife being added on my loan. They will ask for your last 2 w2's, but they will use your Gross YTD to project your income for the rest of the year. If you have gone back to stable say 35 hours a week and can prove that on 2 paystubs, they might have the ability to use it all depending on the lender. I was told however with part time they will take your last 2 years and use the average income of the 2 years, but if your stubs are lower they will take the lower income. Hope that helps