Can I get a mortgage on a property working as an IT contractor?

Hi,





I a few months back was forced to move out of my house, not something that I planned on doing but I'm now renting. I really don't want to rent for long would rather put money into a mortgage than waste it on rent.





I'm 22 am currently I'n a full time role working as an IT contractor. I have been so for around 7months now my first proper job after uni. I have rolling contract which is renewed every year at work.





I'm really looking to get onto the property ladder asap, I under stand that my age and not being a perm employee, will be an issue.





I'm hoping to find a place I'n the range of 100-150k, it would be any great if someone could give me any advice regarding this. Im really looking to find out would it be possible under my current employment status to get a mortgage.





I have no experience I'n this and have no family to turn to for guidance on this matter, what kinda mortgages should I look for, what kind of deposit would I be looking at saving?





Thanks|||well first make sure you can afford a $150K house. what's 35% of your net pay? that's the amount you can afford monthly for taxes, mortgage and insurance. I know you said you had a house before but since you had to leave it, I want to make sure you have your finances in order. especially since it seems your employer could opt not to renew you each year at will. with the job market in the shape it's in, they may opt not to renew next year if they can't afford you.





you'll have to find a realtor with some good mortgage contacts who can pre approve you so you know exactly what your price range is, and then find a lender who will lend to you as a contractor. an underwriting requirement may be some kind of backup from your boss as to how your job works.|||Mortgage lenders want you to have 2 yrs full employment, great credit score, Cash in the Bank. Till you have those you will not be approved|||YOu need 2 years of income tax returns showing the income, once you have that you can buy.|||Rule of Thumb: You can afford to buy a place 2 times annual income, up to 2.5 times, but NOT more than 3 times annual income.

Most lenders want a 2 year job history, and particularly being contractor, this will be necessary.

SAVE for down payment--more you put down, the more likely you are to get approval, and the LESS you pay in interest over the life of the loan. 5-20% down are standard amounts, the more the better.

BUILD your credit rating.

Position yourself for your future, and you can make it happen.|||I would suggest you talk to a lender and go over your situation. It's possible that if you're working in the same field you went to school for, your schooling could count as work history. Are you a self employed contractor or a W-2 employee of the company for which your contract is year-to-year. We have government employees on yearly contracts and with a history of employment with the same company,or field, and a letter of continued employment (probability of contract renewal) you might be able to get a loan. An FHA product would most likely be your best option. FHA requires as little as 3.5% down. FHA Underwriting would probably be more conducive to your situation than a conventional loan. Ask family and friends that have bought homes who they used to get a loan and start there.