Borrower made an offer on a property and she’s interested in a HECM purchase loan. She doesn’t receive Social Security yet (although she was born in 1948 so she could) but she is currently employed through a temp agency earning $21/hour and working 40 hours a week. She’s had 5 years of experience in the industry (accounts receivable/collections) but, has only been on this job since March. Prior to this she was a part-time caretaker for her mother for 13 years. My question is, can we count her income if she’s technically a temporary employee (independent contractor)? Or would she have to be a full-time W2 employee for this to work. She’s earning $3,600/mo so she more than passes the FA if we can count the income.
Employment and income must be verified for at least the most recent two years to satisfy minimum employment history requirements. With the borrower’s long job gap and her recent return to work in a completely different field you would need to establish a prior work history and build the case of her new employment along with demand and likelihood of continuance. The borrower would have to be on the current job for at least 12 months and averaging of current income would be necessary. We are able to use projected income, i.e. SSI, if it begins within 60 days of closing and can be satisfactorily documented with the Award Letter.