Mortgage With Seasonal Income
Seasonal work can count toward a home loan when you have a two-year history. On FHA, you also need to be reasonably likely to be rehired next season.
What you need to qualify
Each item below is a requirement of Fannie Mae, FHA, or at least one other program we offer.
- A two-year history of seasonal income on Fannie Mae and FHA.
- On FHA, two years in the same line of work and a reasonable likelihood of being rehired next season.
- On Fannie Mae, a written verification of employment, or your most recent pay stub and two years of W-2s, plus a verbal verification of employment.
- For off-season unemployment pay on Fannie Mae, proof it is tied to seasonal layoffs, expected to recur, and shown on two years of tax returns.
- On FHA, two full years of documented unemployment income and reasonable assurance it will continue, if you want it counted.
- On at least one jumbo program, proof you have worked the same job for two years and expect to be rehired.
Seasonal income counts
Two-year history
Rehire expected on FHA
Off-season pay can count
Averaged over two years
Some programs want the same job
Can Seasonal Income Qualify For A Mortgage
Yes. FHA defines seasonal work as work that is not year round, no matter how many hours a week you work.
FHA can count seasonal income when you have worked the same line of work for the past two years and are reasonably likely to be rehired for the next season. Fannie Mae also needs a two-year history, documented with a written verification of employment, or your most recent pay stub and two years of W-2s, plus a verbal verification of employment.
Unemployment pay during the off-season can count too. FHA allows it for seasonal workers with two full years of documented unemployment income and reasonable assurance it will continue, and Fannie Mae allows it when it is clearly tied to seasonal layoffs, expected to recur, and shown on at least two years of tax returns. Earn overtime or bonuses too? See our bonus and commission income page.
FHA averages seasonal income over the previous two full years. Fannie Mae averages your year-to-date income with the previous two years. When you work more than one job, Fannie Mae’s limit on gaps longer than one month in the last 12 months does not apply to seasonal work.
Why choose Saxton when your income is seasonal
For borrowers whose work follows the seasons and who want the off-season counted the right way.
Seasonal Income Counts
FHA can count income from work that is not year round when you have two years in the same line of work and are reasonably likely to be rehired.
Two-Year History
Fannie Mae needs a minimum two-year history of seasonal income, and FHA looks for two years in the same line of work.
Off-Season Pay Can Count
FHA can count unemployment income for seasonal workers with two full years documented. Fannie Mae counts it when it is tied to seasonal layoffs, expected to recur, and shown on two years of tax returns.
Averaged Over Two Years
FHA averages your seasonal income over the previous two full years. Fannie Mae averages year-to-date income with the previous two years.
Seasonal Gaps Get An Exception
When you work more than one job, Fannie Mae does not apply its one-month gap limit for the last 12 months to seasonal work.
Some Programs Want The Same Job
At least one jumbo program wants the same job for the past two years and an expectation of being rehired next season.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about using seasonal income for a home loan.
Yes. FHA can count it when you have worked the same line of work for two years and are reasonably likely to be rehired, and Fannie Mae needs a two-year history.
On FHA, work that is not year round, regardless of how many hours a week you work. At least one jumbo program gives examples like umpiring baseball games in the summer or working at a department store during the holiday shopping season.
It can. FHA counts it for seasonal workers with two full years documented and reasonable assurance it will continue, and Fannie Mae counts it when it is tied to seasonal layoffs, expected to recur, and shown on two years of tax returns.
FHA averages the previous two full years. Fannie Mae averages your year-to-date income with the previous two years.
On FHA, you need two years in the same line of work and a reasonable likelihood of being rehired next season. At least one jumbo program wants the same job for the past two years.
On Fannie Mae, a written verification of employment, or your most recent pay stub and two years of W-2s, plus a verbal verification of employment.
When you work more than one job, Fannie Mae does not apply its rule against gaps longer than one month in the last 12 months to seasonal work.
Find out what you qualify for
Tell us about your seasonal work and what you want to buy, and we will show you the programs that fit.
Get Pre-QualifiedLoan amounts, rates, terms, and eligibility are subject to credit approval, asset and income verification, appraisal, and program guidelines. Draw requirements and variable rate terms apply. Program availability varies by state. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.