Staffing & Temp Agency Income

Mortgage lenders typically require a minimum of two years of employment history if you are hired by a staffing agency to include the income on a mortgage application. This is primarily driven by lenders’ need to assess the stability and reliability of the borrower’s income source.

Here are a few reasons why a two-year employment history when working for staffing agency is often required:

1. Consistency of income: Lenders prefer to see a consistent and stable income over a significant period to ensure that the borrower has a reliable source of income. A two-year history demonstrates that the borrower has a consistent track record of employment, reducing the risk associated with irregular or temporary income.

2. Verification of income: Lenders need to verify the borrower’s income through pay stubs, tax returns, and other supporting documents. Having a two-year work history allows lenders to gather adequate documentation to verify the borrower’s earnings and ensure that they meet the loan’s income requirements.

3. Demonstrating job stability: A two-year history with a staffing agency can indicate that the borrower has established a stable employment record. This stability helps lenders assess the likelihood of the borrower continuing to earn a consistent income in the future, thereby reducing the risk of default on the mortgage.

4. Assessing income reliability: Staffing agency jobs can involve a higher degree of job turnover or temporary assignments. By requiring a two-year history, lenders aim to evaluate whether the borrower has consistently received income through the staffing agency or if there have been extended periods of unemployment or irregular earnings.

5. Mitigating risk: Lenders aim to minimize the risk of default by thoroughly assessing a borrower’s financial situation. Requiring a two-year employment history helps lenders gauge the borrower’s financial stability and ensure that they can comfortably manage mortgage payments.

It’s important to note that while a two-year employment history is a common requirement, it can vary depending on the lender, loan program, and specific circumstances. Other factors, such as credit history, debt-to-income ratio, and savings, also play a role in the mortgage approval process. Consulting with a mortgage professional or lender can provide detailed information about the specific requirements for a mortgage application.