How Long Do Contractors Need to Be Working to Get a Mortgage?

How Long Do Contractors Need to Be Working to Get a Mortgage?

Blog Article

If you're a contractor, one of the most common questions is:
“How long do I need to have been contracting to qualify for a mortgage?”

While lenders typically prefer applicants with a stable income history, the good news is—contractors don’t need to have been working for years to qualify for a mortgage. Here’s what you need to know about the length of time required for mortgage approval.

Minimum Timeframe for Contractors
Generally, most lenders require at least 12 months of contracting experience. This shows you have a stable income and are likely to continue working as a contractor. However, there are ways to work around this requirement if you’re newer to contracting.

What Happens if You’ve Been Contracting for Less Than 12 Months?
If you've only been contracting for a short time (less than a year), you may still be able to apply for a mortgage by:

Providing evidence of your previous employment: For example, if you transitioned from a full-time job to contracting, showing proof of your previous employment can help.

Showing a track record of stable income: Lenders may assess your income from previous contracts, especially if you can prove you’ve worked in a similar role.

Lenders Who Specialize in Contractors
Some lenders are more flexible with their criteria and may offer mortgage options to contractors who have been in the industry for less than 12 months. These lenders focus on your contract rate and overall income stability, rather than the length of your work history.

Using a Specialist Broker
A mortgage broker who specializes in contractor mortgages can help find lenders who are more accommodating of shorter contracting histories. They can help you navigate the process and ensure you’re applying with the right lenders for your situation.

Final Thoughts
In most cases, 12 months of contracting experience is enough to apply for a mortgage. But even if you’re newer to the contracting world, you can still get approved with the right documentation and guidance.

At Contractor Mortgage Solutions, we’ll help you find the best mortgage options, no matter how long you’ve been contracting.