How to get a mortgage with a seasonal income

Effective November 16, 2025, both Fannie Mae and Freddie Mac are removing the minimum credit score requirement from their conventional loan eligibility guidelines. Loan approval will instead be based on an evaluation of overall credit risk factors.

If you’re a seasonal worker or business owner, you’re likely very familiar with the unique challenges of budgeting and money management when your income takes big swings from one month to the next. And when you’re applying for a mortgage loan, that variability, such as income that fluctuates with the weather or school year, can make approval a little more complicated.

Fortunately, you can buy a home with a varying income, as long as you have enough income to qualify for your desired loan terms. Even without a steady income that qualifies for a conventional loan with Freddie Mac or Fannie Mae, seasonal income can still be considered for a mortgage. Here’s a look at what you need to know if you’re shopping for a mortgage with seasonal income.

How to get a mortgage as a seasonal worker

While every mortgage application with seasonal income or seasonal employment is unique, you can follow these general steps to prepare your finances to increase your likelihood of approval.

1. Earn income with the same company

If you work in a seasonal field like construction or landscaping, staying with the same employer for a long period of time can be beneficial when applying for a mortgage. Showing W-2s from the same employer, or even multiple employers, for 2 or 3 consecutive years can show lenders that your income is stable, even if it goes down some months.

For example, a ski instructor at a high-end resort may have a high income during the winter months and little or no income during the summer. But with 4 years of tax returns from the same employer, the lender is comfortable that the instructor can afford the monthly mortgage payments for a new FHA loan.

2. Work consistently for at least 2 years

Fannie Mae and Freddie Mac typically require borrowers to show 2 years of income to qualify for a typical conforming mortgage loan. If you’re a seasonal employee or self-employed, your last 2 years of tax returns and supporting documents like W-2, 1099, and K-1 forms are evidence of your income.

If you only have 1 year of seasonal employment or recently lost your job, you may need to wait 1 more year to qualify for a mortgage, according to Freddie Mac and Fannie Mae seasonal income rules.

3. Gather documentation

Whether you’re a seasonal worker or have a steady and predictable monthly income, you’ll need to gather documentation proving your income, employment, assets, and other financial details. With seasonal income, such as construction or oil and gas contractors, adequate documentation is even more important.

Examples of required documents may include:

• W-2 forms
• Tax returns
• Pay stubs
• Bank account statements
• Investment account statements
• Employment verification letters

If you have other income sources, they may also count towards your income for mortgage approval. Potential income sources may include:

• Social Security
• Pension payments or other retirement income
• Interest and dividend
• Rental properties
• Unemployment
• Child support or alimony

If you have other income sources, discuss them with your mortgage provider. They can help you understand what’s eligible and what can’t be included when calculating debt-to-income and verifying your income is sufficient for your desired loan.

4. Save for a down payment

With seasonal employment, you may be able to get a mortgage with no job but a large deposit. As with any loan, a larger down payment increases your odds of approval and lowers your monthly payment if approved. If you lack a full-time work history, a larger down payment may be sufficient to offset this risk for the lender.

Other key signals that could boost your likelihood of approval with seasonal income include a strong credit score and a positive history of on-time payments across all credit-related accounts.

This handy down payment calculator can help you compare the impact of a larger down payment.

5. Consider a co-signer

If you’re still struggling to buy a home on your own after saving up a sizeable down payment and working on your credit, your next best option may be to add a co-signer to your mortgage application.

A mortgage co-signer can share their good credit and income to improve your chances of mortgage approval if your co-signer has a full-time job year-round. Of course, that also means your co-signer shares responsibility to repay the loan, and that the loan and payments will show up on their credit report. Agreeing to be a co-signer for a mortgage is a major financial decision.

Mortgage loan types for seasonal workers

Seasonal workers are not limited to just one type of mortgage loan. They could qualify for the FHA or VA loan programs, for example, which could make it easier to get approved. While 30-year fixed mortgage loans are often the best choice, comparing mortgage loan types can help you make an informed decision that’s aligned with your long-term financial goals.

Conventional loan

A conventional loan can be an attractive option when you’re looking at mortgage financing, because you can make a down payment on a one-unit residence for as low as 3% at a competitive interest rate.

If you make a down payment of less than 20%, you’ll have to pay for private mortgage insurance (PMI). Unlike some other loan types, the mortgage insurance can be canceled once you reach 20% equity.

In addition to the income considerations (more on this later), you need a median FICO^® Score of 620 or better. The other significant advantage of conventional loans is that they’re the only loan option from major investors that allows you to purchase a second home or investment property.

FHA loan

With an FHA loan, you can finance a one- to four-unit primary property loan through Rocket Mortgage^® with as little as 3.5% down. However, the real attraction of FHA loans comes from the fact that they're forgiving – even if you have a couple of dings on your credit.

You may be able to get an FHA loan through us with a FICO^® of 580 or better as long as you maintain a debt-to-income ratio (DTI) of 45% or lower. You’ll also need a housing expense ratio – for example, your mortgage payment compared to your gross income – no higher than 45%.

A median credit score of 620 or higher may allow you to qualify with a slightly higher DTI than you could with other loan options. And if you want to refinance in the future, a 620 score is also required to take cash out.

The downside to FHA loans is a lifetime mortgage insurance requirement if you make a down payment of less than 10%. If you have a higher down payment, you’ll still pay the mortgage insurance premium (MIP) for 11 years.

VA loan

VA loans are available to eligible active-duty service members, qualified members of the National Guard, and reservists, veterans, and eligible surviving spouses.

A big benefit of VA loans is that no down payment is required. Additionally, VA mortgage rates are often lower than the rates you can get on other options. And, if you have a credit score of 680, a VA loan is the only mortgage financing option offered by Rocket Mortgage that allows you to turn all of your existing home equity into cash down the line.

The VA doesn’t set a minimum credit score, but lenders are free to set their own guidelines. At Rocket Mortgage, we require a minimum FICO^® Score of 580.

The only real downside to VA loans is the funding fee, which can be paid at closing or built into the loan. This funding fee can be anywhere between 0.5% – 3.3%, depending on the circumstances of your VA transaction, the amount of any down payment or existing equity, and whether it’s a first or subsequent use.

Certain individuals are exempt from the VA funding fee, including:

• Those receiving VA disability
• Purple Heart recipients who have returned to active duty
• Surviving spouses receiving Dependency and Indemnity Compensation (DIC)

Part-time vs. seasonal income when applying for a mortgage

Some individuals with seasonal income may hold an additional part-time job in addition to their annual recurring employment. If that’s the case, or if you’re employed part-time in general, it’s essential to understand how the two compare on a mortgage application.

Part-time employment is generally considered work up to 30 hours per week, provided it is consistent throughout the year. That’s different from seasonal workers, who often work a full 40-hour workweek (or more), but not for the entire calendar year. Seasonal workers go through periods where they are not working and don’t get a paycheck. In some ways, part-time employment is more desirable to lenders because it doesn’t have the gap experienced by seasonal employees.

The bottom line: Consistent work history may help you overcome seasonal income

Seasonal employment and income can make getting a mortgage more challenging, but it happens every day. With the right supporting documentation and a positive credit history, you may be able to qualify for a mortgage even if you only work and get paid for a portion of the year.

If you’re searching for a new mortgage loan as a seasonal worker, Rocket Mortgage is here to help. Start your mortgage application today and put yourself on track for homeownership, even with a seasonal income.

The 3% down payment option is only available on certain conventional loan products and is not available in all states. Additional terms and conditions may apply.

To qualify for this offer, you must meet all standard FHA eligibility requirements. In addition, your total mortgage payment, including taxes and insurance, cannot exceed 38% of your income, your debt-to-income (DTI) ratio cannot exceed 45%, and you must have 12 months of verifiable housing history immediately prior to your application, no late payments 30 days or greater in the last 12-months, and no derogatory marks on your credit report. Not available on jumbo loans. Asset statements may be needed, no more than 1 day of non-sufficient fund fees are allowed in the most recent 2 months prior to application. Additional restrictions/conditions may apply.

Refinancing may increase finance charges over the life of the loan.

Rocket Mortgage is a VA-approved lender, not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency.