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PDtax
PDtax, CPA, MBA
Category: Finance
Satisfied Customers: 4099
Experience:  Tax professional and business consultant for 35 years.
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I have worked same temporary agency years and 6 months I

Customer Question

I have worked for the same temporary agency for 2 years and 6 months I made $35 thousand gross in 2014 and 37 thousand gross in 2015. I am currently on track to make $40,000 in 2016. My current round credit score is 760. I qualify for a VA loan. I have no liens and only $325.00 in monthly payments and less than 8% usage on $8000.00 credit limit. My question is this will the fact that I work for a temporary agency, diqualifie me fro attaining a mortgage
Submitted: 5 months ago.
Category: Finance
Expert:  PDtax replied 5 months ago.

Hi from Just Answer. I'mCustomer The answer is it depends.

After the 2008 financial crisis, lenders went back to older, stricter loan qualifiers for new mortgages. Old rules like 28% of your income is the maximum annual debt service you can afford, 36% is the total amount of all debt service, and some other requirements. One is a disdain for temp agency employment.

While this is not universally shared, it will likely preclude some lenders from looking at your loan application. Others, seeing a long track record and continued employment, will be more reasonable.

I think you will find more than one lender willing to write your loan. It may not be a VA loan, but you should qualify for a mortgage.

Keep the 36% rule in mind with the $325 monthly payment you already have. At $40,000, you will qualify for $1,200 per month in allowable debt service, leaving $875 available for monthly mortgage payment, taxes and insurance. Depending on the loan you seek, you may need to reduce your available credit limit from the cards too.

I am seeing lenders willing to write for less than top tier applicants, for all kinds of credit. I suspect that will extend to your mortgage, as your employment, although steady and consistent, will have to be acceptable to your lender.

Thanks from just Answer, and good luck with your house hunt. Please rate my assistance to close out your inquiry. I'mCustomer

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