For the past 2 yrs I have worked as a contractor/consultant W2 & not with various consulting companies). I work on IT projects so when the project is finished, my job is over until the next one comes around. This could be a month or even 3-4 mths.

I’ve been shopping around for home loans and all the lenders say that my "inconsistent" job history will make it difficult to get a loan, unless I have 20% down payment…which I have but don’t want to use as it is my reserve funds for those months in between jobs. I do plan to put down 3-5% if necessary. So I know I’m not the only one doing this type of work, thus it must be possible to get a home loan unless all contractors are just renting or homeless! 🙂

I’ve been told if I can give a "good explanation" as to why I was not working it will convince the underwriters that I’m not a risk.

What have others done in my situation to "explain" to the underwriters for these periods of being without a job? Any lenders you can recommend?

Home loans are now available to many people for whom they would have been out of the question just a few years ago. You’d be in much better shape to bargain for better interest rates if you had a more impressive credit history, but if the house you want is the deal you believe it to be, a bad credit home loan can still<!–work to your advantage.Your best bet in assuming a bad credit home loan is to pay as much cash up front as possible, and see if by doing so you can negotiate a lower interest rate.

You’ll save enough money over the term of the loan to compensate for the sacrifices you had to make in handing over the down payment.
The bad credit home loan can be a win-win proposition for both lenders and borrowers; the lenders, thanks to the higher–>interest rates, get bigger returns on the money loaned, and the borrowers get a homes in which to build equity, and chances to restore their credit records so that the first bad credit home loans they take will also be the last!

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