FHA Loans for Truck Drivers
Truck drivers are critical in helping to bring necessary goods to your community and to keep the economy moving. What many do not realize is it is often difficult for truck drivers to qualify for a mortgage based upon how they are paid and manage the expenses.
Truck drivers face unique mortgage challenges due to fluctuating income and self-employment. Learn how to qualify for a home loan with the right lenders and loan options
Truck drivers are able to qualify for an FHA loan whether they are salaried drivers or paid hourly or per load. Working with the right lender that is familiar with how to handle the complicated income of a truck driver will make it much easier to purchase a home.
If you are looking to get pre-approved and would like a quote, please complete this short form and you will get the help you are looking for.
Mortgage Challenges That Truckdrivers Face
Truck drivers often face unique challenges when trying to get approved for a mortgage due to the nature of their income and employment structure. Here are some of the biggest obstacles they encounter:
1. Irregular or Fluctuating Income
Many truck drivers are paid per mile or per load, leading to inconsistent monthly earnings. Lenders prefer stable, predictable income, making qualification more difficult.
2. Self-Employment Verification Issues
Owner-operators or independent contractors must provide two years of tax returns to prove income. Deductions on tax returns can lower reported income, reducing borrowing power.
3. High Debt-to-Income (DTI) Ratio
Truck drivers often have large vehicle loans or lease payments, increasing their DTI ratio and limiting the amount they can borrow.
4. Difficulty Providing Proof of Employment
Lenders require two years of steady employment, but job changes, switching from W-2 to 1099, or gaps in work history can raise red flags.
5. Limited Time for the Mortgage Process
With long hours on the road, truckers may struggle to gather documents, communicate with lenders, or attend in-person meetings.
6. Down Payment Challenges
Saving for a down payment can be difficult due to business expenses, fuel costs, and truck maintenance, making low-down-payment mortgage options more appealing.
7. Credit Score Considerations
If a truck driver has a low credit score due to missed payments, high credit utilization, or inconsistent income, qualifying for a competitive mortgage rate becomes harder. You can qualify for an FHA loan with bad credit with a slightly larger down payment.
8. Difficulty Using Per Diem Income
Some lenders don’t count per diem pay (daily allowances for meals and expenses) as part of qualifying income, reducing the amount a trucker can borrow.
FHA Guidelines for Truck Drivers
Truck drivers will have to meet the same basic requirements for an FHA loan just like everyone else. Where it gets tricky is how truck driver income is paid.
The minimum requirements for a truck driver to be approved for an FHA loan are as follows:
- Two year work history and does not have to be with the same trucking company
- 3.5% down payment
- Credit scores over 500
- No recent bankruptcies or foreclosures
- The home must be your primary residence
Truck Driver Income
These are the various ways truck drivers are paid. The lender will be required to look at your income differently when trying to help with an FHA loan approval.
W2 Salaried Income – If you are paid as a salaried truck driver, you will have an easy time getting approved for an FHA loan. The lender will look at your recent pay stubs, last two years W2s and also your last two years tax returns.
If you recently had a significant increase in pay, you will either have to wait a few months to show the new income is being paid consistently, or provide a written letter from your employer about the new pay.
Hourly – If you are paid hourly, you will need a 2 year work history of a consistent hourly pay. If you do not have the two year or hourly pay, your employer can provide a letter documenting the guaranteed hours.
It is important to keep working consistently for the months leading up to your mortgage application and right up to the day you close on your new home.
Paid by the Load – Some truck drivers are paid by the load rather than on salary or hourly. You will need a two year history of being paid by the load to qualify for an FHA loan.
Paid by the Mile – If you are paid by the mile, you will need a two year work history of being paid this way. If your employer is guaranteeing a minimum number of miles, then provide that documentation when applying for a mortgage.
Overtime – you will need a two year history of documented overtime income to use that when applying for an FHA loan.
Read [FHA loan with 1099 income]
How to Buy a House as a Truck Driver
The most difficult thing is making sure your income can be used and documented. Following a plan set by a qualified loan officer well in advance will help set you up for a smooth approval.
Next, determining where you want to live can be a challenge. You need to think about the potential to live near a lane that you typically travel for work. Maybe even near a place where you often pickup a load with consistency.
Finally, with a hard life on the road the last thing you want to do is come home to a place that is in need of repair. Therefore, find something that is turn key and does not require TLC unless you are prepared to work on the road, and then work again when you get home.
Do Not Change How You are Paid
If you are planning to apply for a mortgage in the next year, then it is important to keep your pay type the same. Changing from salaried to being paid hourly or by the mile will hurt your chances of being approved.
The exception to this is if you are transitioning to being salaried. Lenders look more favorably on this type of guaranteed income and you can apply just after three months after changing to a salaried truck driver.
Closing On Your Home While On the Road
Truck drivers are often on the road for days at a time which can make it challenging to schedule an in person closing on the purchase of your new home.
You can electronically sign the closing documents while on the road using a mobile closing agent anywhere in the world. This will allow you to maintain your work schedule as a truck driver and purchase a home even if you are in another state.
Truck Driver Benefit When Using an FHA Loan
One of the restrictions when applying for an FHA loan is having more than one FHA loan at the same time. You can buy another primary residence while keeping your current home (with FHA financing on it) but the new home must be at least 100 miles away.
As a truck driver, you may have the flexibility to live anywhere since you are not working in an office. This will allow you to potentially hold onto one home while buying another with an FHA loan.
Bottom Line
There are FHA loans for truck drivers regardless of how you are paid. You will need to fully document your income and it needs to be consistent for the past two years.
Here are the top 10 frequently asked questions truck drivers when trying to buy a home:
Can I get a mortgage as a truck driver with fluctuating income?
Yes, but you may need to show a stable two-year work history. Some lenders accept bank statements instead of tax returns to verify income.
What mortgage options are best for truck drivers?
FHA loans, VA loans (for veterans), and bank statement mortgage loans are popular choices. Non-QM loans can also help self-employed truckers.
How does being self-employed affect my mortgage approval?
If you’re an owner-operator or independent contractor, lenders will review your tax returns, 1099s, or bank statements instead of W-2s.
Can I use my per diem pay to qualify for a mortgage?
Most lenders do not count per diem pay as qualifying income, so you may need to rely on other earnings to meet income requirements.
What credit score do I need to get a mortgage as a truck driver?
Most lenders require a 620+ credit score for conventional loans, but FHA loans allow scores as low as 500 with a higher down payment.
How do truck payments impact my mortgage approval?
A truck loan or lease increases your debt-to-income (DTI) ratio, which can limit how much you can borrow. Paying down debt can improve approval chances.
Can I qualify for a mortgage with tax deductions reducing my income?
If you deduct too many expenses, your reported income may be too low for loan approval. A bank statement loan can be a good alternative.
Do I need to prove two years of stable income?
Yes, lenders typically require two years of steady employment in the trucking industry to approve a mortgage.
What documents do I need to apply for a mortgage as a truck driver?
Lenders usually request:
- W-2 employees: Pay stubs, W-2s, and tax returns
- Owner-operators: Bank statements, 1099s, tax returns, and a profit & loss statement
Are there mortgage lenders that specialize in truck drivers?
Yes, some lenders specialize in self-employed borrowers and offer alternative documentation loans like bank statement or non-QM loans.
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