The 2 Year Hustle Into a Home

“You don’t have to be great to start, but you have to start to be great.” -Zig Ziglar

When it comes to purchasing a home, having a reliable source of income is a crucial component. However, for those who are struggling to meet the income requirements, there is always hope. One way to bridge the gap and increase your chances of qualifying for a mortgage is by working a side hustle for at least two years. This may seem like a daunting task, but it can be a simple and effective solution to realizing your homeownership dreams. With the present interest rate market, many have been discouraged by the home that they can currently afford. So, I want us to explore how working a side hustle for two years can qualify potential homebuyers for a mortgage.

“A side hustle can provide a great opportunity to save more money than you would be able to with just one income. By consistently saving a portion of your side hustle income, you can reach your down payment savings goals much faster.” -Tiffany Edwards

Increased Income

Incase you did not know, you need to have at least 2 years of work history in a part-time role to have that income be considered “qualified” when looking to purchase a home. Knowing that, it is easier to understand how working a side hustle for two years can significantly boost your income and, ultimately, increase your chances of qualifying for a mortgage. When evaluating a mortgage application, lenders typically look at various factors, including credit score, debt-to-income ratio, and current income. The latter plays a significant role in determining how much home you can afford. A higher income qualifies you for a larger mortgage. Therefore, if you’re struggling to qualify for a mortgage on your primary employment salary alone, picking up a side hustle can help boost your income. You can also use the additional earnings to pay off outstanding debts or save up for a down payment while pursing to increase your overall income to better qualify for a mortgage.

Apart from the potential earnings, a side hustle can offer numerous benefits, including gaining new skills, exploring new interests, and building independence. It also provides an excellent opportunity for people to try out entrepreneurship or a new career path before going all-in. This can help you increase your earning potential over time, allowing you to make even more money than a traditional job.

“Side hustles can provide a source of additional income that can help you qualify for a mortgage, especially if you’re a first-time homebuyer,” -Blake Rogers

Diversify Your Income

Working a side hustle allows you to diversify your income, creating a second stream of revenue that can generate a more stable financial future. This additional income can not only increase your chances of qualifying for a mortgage but also provide a cushion in case of unexpected expenses or emergencies. If you end up liking your side hustle and continue it beyond qualifying for a mortgage, you can also allocate those funds towards other investments.

“A side hustle can be a great way to reach your financial goals while also creating a sense of financial security.” -Sarah Johnson

Affordability

In today’s interest rate market, an extra $750 per month in income could make a significant difference when it comes to affording a house. With interest rates remaining higher than historic averages, homebuyers can afford to purchase more home with extra income. Working a side hustle for two years can be a beneficial way to increase your income, diversify your revenue streams, and build your savings to qualify for a mortgage. If you’re a potential homebuyer and struggling to meet income requirements, consider picking up a side hustle. Consistent income over those two years can help bridge the gap and increase your chances of realizing your homeownership dreams.

As you embark on your side hustle journey, remember to balance it out with your main job and personal life to avoid burnout. By being committed, strategic, and focused, working a side hustle can make a significant difference in your financial future, and ultimately, lead to a new home. With all of this in mind, always have an end goal in mind when pursuing these 1–2 year goals. Without it, it’ll lead to higher burnout which typically flows into the lives of your loved ones around you. Make a plan, write it down, communicate it and then see how the efforts begin to payoff!

This is not financial advice. For educational purposes only. Before making any financial decisions, consult with a professional.