How to get a loan with a temp job

19 Replies

I am struggling with getting a loan due to a temp job/working with a staffing agency. My offer got accepted on a house and I was suppose to close on Dec 10th. Today, I receive a phone call from my lender saying that I am unable to get a loan because my employer now is a staffing agency and I am contractor for the government. I am guarantee a year worth of work with intent to extend. I have no clue what to do and I would love some advice. Have any of you gone through this? I do not want to lose this house.

Thank you in advance!

@Michelle Paulsen Do you have the ability to add a co borrower? Some banks may make an exception with work history and bank statements showing income and a larger down payment. I work with multiple lenders that dont look at income, they look at credit and the asset, its 20% down for a purchase and you will need to start an LLC, but it could help save the house, and then you will already have the LLC ready for the next investment deal. Connect with me and let me know how I can help.

Hi @Michelle Paulsen

What type of lender are you working with? If it is a big bank (wells fargo, US Bank, Etc.) I would move on to a different option. A mortgage broker would be a great start, otherwise I would begin calling around to a handful of small, local lenders until you find someone who will work with your situation. At minimum receive a few different perspectives before giving up hope!

@Michelle Paulsen if you’re trying to keep this particular house then you’ll probably have to either find some way to appease your lender (ask, what would it take to make this loan approvable?), or get an extension from the seller to restart the loan process with another lender.

You might think that the latter wouldn’t be possible but you never know what’s going on with the seller; maybe their moving plans are taking longer than anticipated and they’d appreciate the extra time too, or maybe they’d like the sale in 2021 tax year instead of 2020, etc.

@Michelle Paulsen The lender you are working with could add a co borrower, worth a try, depends if they are allowing any of your income to help with debt to income. The income and the debts of the co borrower will be a factor once added. Checking with other local banks can help too, being a government contractor do you have a credit union that you could talk to.

Another option might be finding a hard money lender to work with. Get it closed and refi in 6 months....

Check out hmm in your area through the BP website

Good luck

If this is going to be an owner-occupied property then most hard money lenders are going to be an immediate no on the loan. If it's not owner-occupied then I agree it's an option, but rates are usually considerably higher than banks so it could be a challenge to find a HML rate & payment that would work.

Credit to you for not giving up and trying to figure out a creative solution to get the deal done. A lot of people just throw up their hands in this situation and give up. Best of luck. 

@Michelle Paulsen

Hi Michelle,

Not being bankable by one bank doesn’t mean that another bank will deny you. You should call around. There will be someone who would be able to give you the loan. If you have exhausted all lenders within your area (don’t forget credit unions). You can then try and find a co borrower for the loan.

Goodluck!