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Seasonal income—earned from jobs that operate only part of the year, like tourism, agriculture, retail, or construction—can complicate the mortgage application process. Unlike salaried employees with consistent year-round earnings, seasonal workers need to provide more thorough documentation to prove income stability and repayment ability.
Mortgage lenders are increasingly open to borrowers with non-traditional income sources. However, to qualify for a mortgage with seasonal income, you must show that your income is stable, reliable, and likely to continue.
Key Requirements for Documenting Seasonal Income
1. Minimum Two-Year History
Most lenders require a consistent two-year history of seasonal employment in the same or related line of work. This helps demonstrate income continuity despite seasonal fluctuations.
Documentation tip: Provide W-2s, pay stubs, and tax returns for the past two years showing the same seasonal job or industry.
2. Year-to-Date Income Verification
Lenders will ask for recent pay stubs and possibly a year-to-date profit and loss (P&L) statement if you’re self-employed or contract-based.
Need a mortgage that understands your seasonal income? Talk to a home loan expert today.
3. IRS Tax Transcripts
Seasonal income must be verified through official tax documentation. Lenders typically ask for:
- Full federal tax returns (Form 1040) from the past two years
- IRS Form 4506-C (request for tax transcript)
- Schedule C or K-1s (for self-employed seasonal workers)
4. Employer Verification
You may also need to provide a letter from your employer verifying:
- Seasonal nature of the job
- Your expected return to work next season
- Your pay structure (hourly, salaried, or contract)
5. Consistent Work Gaps
If there are employment gaps during the off-season, lenders need to see a pattern. Sporadic or unexplained gaps may raise red flags.
How Lenders Calculate Seasonal Income
Lenders average your seasonal income over a 24-month period to calculate your qualifying income. This includes:
- Gross income from the past two years
- Any off-season unemployment benefits (only if consistently received)
If your income increased in the most recent year, lenders might still average it with the previous lower year unless you can prove the higher income is sustainable.
Learn more about calculating self-employed and non-traditional income for mortgage approval.
Common Challenges and How to Overcome Them
| Challenge | Solution |
| Irregular work history | Provide detailed job history and employer references |
| Cash payments not documented | Deposit all income into a bank account to create a paper trail |
| Gaps in tax filings | Ensure your tax returns are up to date and accurate |
| Declining income trend | Offer explanations, such as one-time events or temporary health issues |
Use our mortgage readiness checklist to avoid surprises when applying with seasonal income.
FAQ: Seasonal Income & Mortgages
Can I get a mortgage with only seasonal income?
Yes, if you can demonstrate a reliable two-year history and provide proper documentation, you can qualify.
What if I changed seasonal jobs?
If the new job is in a similar industry and pays comparably, most lenders will still consider it as continuous employment.
Do I need to be working at the time of application?
Generally yes, or you need a letter stating you’ll be returning to work within 60 days of closing.
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For more personalized guidance, reach out to our team and get matched with a lender who understands the nuances of seasonal income.
Get Expert Financing
- Matched with investor-friendly lenders
- Fast pre-approvals-no W2s required
- Financing options fro rentals, BRRRR, STRs
- Scale your portfolio with confidence
Our advice is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.
