Can you Qualify for a USDA Loan with Part-Time income or a Second Job?

Can you qualify for a USDA Loan with Part-Time Income or a Second Job? 

In today’s economy, it is more and more common to see secondary employment or someone who may not be considered full time.  It is important to know, options are available, but specific steps are required when trying to qualify for a USDA loan with part-time income or a second job.  Today’s video tip will keep you in the know!

By the way, don’t forget to take advantage of our free 2nd opinion service.  This is great for both existing transactions or new pre-qualifications.

How do qualify for a USDA Loan with Part-Time income or a Second Job?

For cases when trying to qualify for a USDA loan with part-time income or a second job, this can still be possible but caution needs to be applied.

As a starting point, USDA guidelines state the following when calculating repayment income for Second Jobs or Part-Time employment:

• The applicant has worked this position uninterrupted for the past two years and will continue to do so, and
• This type of income must be likely to continue for the next three years in order to consider the income for repayment, and
• To utilize secondary employment income, it must be reported on the applicant’s tax returns for the most recent two year period

Second or part-time job income refers to jobs taken in addition to the normal, regular employment to supplement the applicant’s income.  

It further states, that if an applicant’s regular employment is less than a typical 40-hour work week,

the stability of that income should be evaluated as any other regular, ongoing primary employment.

For example, a registered nurse that has been working 24 hours per week for the last year.

In summary, it can be possible to qualify for a USDA Loan with Part-Time income or a Second Job, but having a two year history is a critical first step in this calculation.