1099 vs Full Time Employment

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This topic contains 6 replies, has 3 voices, and was last updated by  SnillocS 5 months ago.

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  • #47213

    SnillocS
    Member

    I have been both, a 1099 contracted employee (part time) and full time regular employee for two years. I’m reading in the NACA handbook about Employment verification, pay stubs, etc. My question is do I have to include my 1099 work history and pay stubs when trying to get qualified for the purchase program? Although consistent, the pay varies (much lower than full time pay) and is only part time. In other words do I have to show 24 months of 1099 Employment history AND 24 months of full time employment history (with same employer) or can I just use my full time job for qualification? I do not see any info about qualification when you have a 1099 and a W-2…only one or the other!

    Thanks

    #47217

    TTrumble
    Member

    Hello SnillocS,

    I’m afraid your question is rather confusing the way it has been presented. Are you talking about your last four years of work history in total or are you somehow a full-time W2 employee AND a part-time 1099 employee at the same time?

    Remember, NACA uses your last 24 months of financial history to determine your qualification and affordability. For income from any part time job to be included, you must have held that job consecutively for the past 24 months. While full time employment also requires a 24 month work history, it does not have to be the same job or employer for the entire 24 months.

    Tim Trumble
    Online Opertions, NACA
    ttrumble@naca.com

    #47218

    SnillocS
    Member

    Tim, sorry for the confusion! That’s exactly what I’m saying, I’m both a 1099 AND a full time employee. I’ve worked the 1099 for 24 months and the full time for 20 months. I was wondering if naca considers the income from both jobs combined since I don’t have enough time at my full time job or am I supposed to just wait 4 months to qualify with the full time job? *NOTE The 1099 doesnt make nearly enough money, but I’ve been doing it for over 24 months.

    #47227

    southflorida
    Member

    I think you have to wait 4 more months to be qualified, but hey! that’s not too long, just start the process now and use these 4 months to be very prepared, save any payment shock required, etc, let your counselor give you the action plan

    #47230

    SnillocS
    Member

    Thanks @southflorida you’re probably right. It’s cool, my lease isn’t up until the end of the year, just trying to be proactive by having all of my ducks in a row!

    #47232

    TTrumble
    Member

    Hello SnillocS,

    You will have to wait until the full-time job has 24 months of history. Then we can count BOTH sources of income. Southflorida’s advice was very good.

    Another thing you can do to prepare is to pull your credit report and review it. You are entitled to one free pull of yorur credit report each year from all three agencies by going to http://www.annualcreditreport.com. Use this to see if there are any irregularities in your report. Any items that are charge-offs or collections with in the pst two years must be paid off or in a payment plan for at least 12 months. Charge-offs and collections more than two years old will need a Letter of Explanation describing what they were and why they were not paid. You will also want to deal with any inacuracies that you find in your report such as false reports of late payments and accounts that do not belong to you.

    Please keep us updated on your progress.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    • This reply was modified 5 months ago by  TTrumble.
    #47234

    SnillocS
    Member

    Thanks @ttrumble! This is exactly what I was confused about, so thanks for clarifying. Sorry, for all the confusion and thanks for the good advice on other things to consider as I go thru this process. I am starting very early in hopes of eliminating some of the issues that I’ve seen other buyers experience along the way.

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