Last Updated on October 24, 2022 by Eric Jeanette
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 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.
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]
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.
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.