Realtor Builder

Qualifying for a Mortgage in the Gig Economy

Show Transcript

Having a variable income can make it more complicated for aspiring homeowners to apply for a mortgage, and realtors need to be armed with tips on how to discuss these challenges.

Potential homebuyers who are paid irregularly should average their paychecks over the course of two years to give lenders a good idea of their monthly take-home salary. If they’re self-employed, they should also provide two years of personal and business tax returns.

You’ll also want to advise homebuyers to keep their debt-to-income ratio below 43 percent and be prepared to explain dips in income.

Finally, just like future homebuyers with a predictable paycheck, those with side gigs should have a credit score of at least 640 to qualify for an FHA loan—or 700 for a conventional loan—and have saved for a down payment.

With a well-budgeted plan in place, extra income boosts like this can make the dream of owning a home a reality.

Ready to help your clients plan a home purchase?    

Reach out to your local loan officer or visit for more information.

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