Part-time income counts toward a mortgage, and plenty of Florida buyers qualify with a part-time job as their only work or with a weekend job stacked on top of a full-time one. Those two cases follow different rules. A part-time job that's your main job is treated like any other hourly job. A second job is extra income, and lenders want to see that you've kept both jobs going long enough to rely on it.
When part-time is your main job
FHA's handbook defines part-time employment as work that isn't your primary employment, so a 30-hour job that's your only job is normally treated as your primary job. The lender verifies your work history and multiplies your hourly rate by your regular hours. When hours vary week to week, FHA averages the income over the previous two years, and Fannie Mae averages your hours over at least the most recent 12 months and multiplies by your current rate.
A home health aide paid $17 an hour for a steady 30 hours a week earns $17 × 30 × 52 = $26,520 a year, or $2,210 a month. That counts in full on every program.
When it's a second job
| Program | History for a second or part-time job | How it's calculated |
|---|---|---|
| FHA | 2 years uninterrupted, and likely to continue | Average of the previous 2 years |
| Conventional (Fannie Mae) | 2 years recommended, no less than 12 months with offsetting strengths | Averaged over the time received, at least 12 months |
| VA | Generally 2 years | Averaged; 12 months verified can offset debts with 6 to 24 months left |
| USDA | 1 year working both jobs at the same time | Presumed to continue unless evidence shows it will stop |
Whichever program you use, the lender wants to see both jobs held side by side without a long break.
A worked example
Keisha works full time as a medical assistant for $3,250 a month. For the past two and a half years she's also worked weekends at a pharmacy, earning $14,400 two years ago and $15,600 last year. Her debts are $300 a month.
- Two-year average from the weekend job: $30,000 ÷ 24 = $1,250.00 a month
- Qualifying income: $3,250.00 + $1,250.00 = $4,500.00
Here's FHA at a 5.75% rate, with property tax of 0.95% a year and homeowners insurance of $283 a month:
| Full-time job only | Both jobs | |
|---|---|---|
| Qualifying income | $3,250.00 | $4,500.00 |
| Highest FHA price | $178,000 | $262,000 |
| House payment | $1,522.59 | $2,107.57 |
| Housing ratio | 46.8% | 46.8% |
| Total debt ratio | 56.1% | 53.5% |
The weekend job adds $84,000 to her price. At $262,000 the payment breaks down to $1,501.27 in principal and interest, $207.42 in property tax, $283.00 in insurance and $115.88 in monthly mortgage insurance.
If your part-time history is short
- Keep the second job going. Quitting a weekend job a few months before you apply can erase income the lender would otherwise count. Staying past the 12-month or two-year mark adds it back.
- Ask about guaranteed hours. If your employer guarantees a minimum number of hours, Fannie Mae can count your base pay without a minimum history.
- Add a spouse or co-signer. A spouse's full-time paycheck, or a parent co-signing on FHA or Conventional, fills the gap while your history builds.
- Watch USDA's household limit. USDA counts the income of every adult in the home toward its income limit, including adult children with part-time jobs.
- Keep the cash side small. FHA 100% financing covers the 3.5% down payment with a down payment assistance second, from a 580 credit score.
To see both jobs at work, enter your averaged income in the QualRate calculator and compare the price with and without the second job. When your history is close to a cutoff, call AAA Capital Funding at 888-601-8344 and we'll tell you the month the second job starts counting.