Getting mortgage as contigent staff?

Nurses General Nursing

Published

I am a dude ICU float/ contingent/ perdiem nurse in the metro detroit area. I recently decided its time to buy my lake house and get some toys (boat jet skis and such) to play with in the summer.

Does anyone know the terminology or how did you get it across to your mortgage banker person that you dont work full time but still bring home full time pay/ good money. I tried explaining to the woman that I have it worked out that I can work one 16 hour shift at the hospital on emergency/bonus/short staff pay and bring home just shy of 1k for that shift.

I also told her that I like to bring home 50-60k/year for my income (my tax documents I provided her show this)

Over the phone she seemed very confused with what I explained to her so I was hoping that someone who has been through the mortgage process as a non full time RN could fill me in on their experience or terminology that I need to use with the bankers to help them to understand my situation.

Thanks in advance

~Kyle

Up Vote Up Vote ×
Specializes in Huntingtons, LTC, Ortho, Acute Care.

Hi Kyle,

I had the same issue, and I wound up

having to take a full time job/ pay cut. Therefore having to buy the smaller house. This is the issue, not being a full time employee means you do not have dependable income. Sure you can make full time hours on a per diem assignment but the problem is you need from your HR department a letter saying you are guaranteed full time employment, but being designated as per diem you are not. You're job is not obligated to lie for you so you can have a mortgage. I hate to say this but I couldn't find any way around this BS other than taking a full time position. Now there is no saying you can't go back to per diem after your closing :whistling:

Up Vote Up Vote ×
Specializes in Med/Surg, Ortho, ASC.

I have to agree with the previous poster - I'm afraid that you may be out of luck. Even though you can prove your past annual earnings, lenders want guarantees of full-time employment.

I hope I'm wrong. Good luck.

Up Vote Up Vote ×

We are going to close on the sale of our lake house in a few days. It's been great; I wouldn't trade it for anything. But we are pretty ready to be done with it. I'll just advise you to really examine the costs associated with this. The insurance on our jet skis was more than that of our boat. They seem to need lots of maintenance. It seems like every time we go to the lake house, something else is broken. Lots and lots of money involved in maintenance, taxes, insurance.

Get a full time job to satisfy the mortgage people. Then go back to part time after you close the deal.

Up Vote Up Vote ×
Specializes in geriatrics.

Agreed. Unless you decide to go with a mortgage broker, most traditional institutions expect to see 2 years of full time income, bank statements and tax returns.

Up Vote Up Vote ×

As the above poster stated, two years of steady employment is the standard for getting a mortgage. You might find some lenders to be flexible on this, or you might have a staff member trying to reach a quota who might give you the benefit of the doubt. If you shop around, you might be able to beat the standard.

Up Vote Up Vote ×
Specializes in Case mgmt., rehab, (CRRN), LTC & psych.

I've obtained three mortgages during my lifetime and was never specifically asked whether my current employment was full-time, part-time, or PRN/casual/per diem.

The loan officers only cared that my previous two to three years of income could be verified through W2 forms. They focused on my annual income and credit rating, not the status of my employment at the job I happened to hold at that time.

Up Vote Up Vote ×
Specializes in ED, ICU, PSYCH, PP, CEN.

This happened to me. I had to write a long description of how I worked and who I worked for and then get letters from the 4-5 agencies I had worked for. I was working with 4-5 different agencies and had been for about 4 years. Chase bank eventually said no, but a little mortgage company said yes. Of course I also had a fair amount in savings so that helped seal the deal.

We have been very happy with the little company that gave us a break.

Up Vote Up Vote ×
Specializes in nurseline,med surg, PD.

"I am a dude ICU float/ contingent/ perdiem nurse in the metro detroit area. I recently decided its time to buy my lake house and get some toys (boat jet skis and such) to play with in the summer.

Does anyone know the terminology or how did you get it across to your mortgage banker person that you dont work full time but still bring home full time pay/ good money. I tried explaining to the woman that I have it worked out that I can work one 16 hour shift at the hospital on emergency/bonus/short staff pay and bring home just shy of 1k for that shift"

I want to be you.

I did that wrong. Sorry

Up Vote Up Vote ×

You have a unique way of earning income and lenders dislike uniqueness, because it tends to increase risk.

You have a few options here, none of which will be easy.

1: Get a full time job for a bit, so that you can get that full time employment letter from HR. This may be a 6 months to a year type gig in order to get pre-approved through signing. Then you can go back to your previous employment status.

2: Shop around for a mortgage company who will work with your "irregular" income. Try smaller credit unions, small community banks, or stand-alone mortgage companies. You may want to find someone who can do a manual underwriting.

3: Save up a ton of money and have a huge down payment. If you can come up with a 50% down payment, your risk is significantly reduced in the eyes of a lender.

I'd start working on #3 and #2 simultaneously. There has to be dozens of mortgage lenders in Detroit, someone will be willing to take your interest payments. You'll just have to take a few extra steps than other people.

Up Vote Up Vote ×
Specializes in Reproductive & Public Health.

Just to throw a little unasked for and only semi-topical advice- if you are young and do not have children, you have a really good opportunity to sock away a significant amount of savings.

Do you own the house you live in? Taking on two mortgages may be within your budget, but just imagine how much money you would have it you threw it in your savings account instead? You'll be setting yourself up for a much swankier boat house in the future.

And also. You really are a contingent employee. Your financial status could change abruptly, regardless of any understanding you may have with the management.

Up Vote Up Vote ×

Commenting as a previous mortgage underwriter for 15 years:

They will likely be viewing your application and underwriting your mortgage as they would for people that are self-employed. They will be requesting documentation (tax returns) for the last two years 2014/2015, possibly the most recent paystubs, and will "average" out your income to arrive at your annual income. Because you are not salaried/hourly employee, this will be the only way to gauge what your income truly is and what you can afford. You may also want to expect a higher down payment/credit score requirement as a result. They will look heavily at your savings and credit profile.

NOTE: buy NOTHING until after you have signed/closed on your home...minimize credit checks and make sure you get a formal pre-approval prior to shopping/making offer on home...

As noted above: try not to max yourself out by going to the absolute top of your approval limits...obviously you may be at an advantage due to flexibility in your schedule and the ability to potentially work more hours to increase income.

Up Vote Up Vote ×
+ Add a Comment