I recently came across a New York Times article about "Job Jugglers", young people who find they are working long work weeks with more than one job.
After completing their educations (with a boatload of school loans), these young folks not only strive to stabilize their financial means by doing whatever they have to but they rather enjoy it and really don't want to limit themselves to just one job.
The article goes on to state that this trend is probably not going to change anytime soon.
"The likelihood of this generation devoting their professional life to just one job or career at the same time is simply counterintuitive to their worldview. We will see this generation pursuing multiple jobs and careers at once even in a robust economy."
As a Mortgage Loan Originator (MLO) here in Los Angeles & Ventura counties who works with a lot of young first time home buyers, multiple jobs is not unusual among many of these buyers yet it continues to plague some of their loan transactions when dealing with some lenders and their underwriters.
For many people who still have a job, 60+hrs a week has pretty much become the new 40hr a week job and for many, that entails more than one job. With so many companies and employers trying to reduce expenses while still trying to maintain production levels, many employees have to accept reduced work weeks or part time positions in order just to keep their jobs.
Many of these employees (especially those with huge school loan payments hanging over their heads) have to find second part time jobs to supplement their first part time job in order to maintain their financial security. This trend of working longer hours and more than one job is not going to go away anytime soon; for many it is simply their new reality (and has been for quite awhile) and some lenders and their underwriters have been slow to adapt to this new trend.
Just recently, I spoke with someone who was getting a lot of grief from their big, national, retail bank about their 60+hr work week at more than one job. In the last few years, this has become a common problem for many "job jugglers" who need to be able to use all of their income for qualifying purposes.
Mind you, these borrowers have met the requisite two years of continuous employment and has maintained these 60+hr work weeks for more than the requisite two years too.
I too have come across this issue myself with some of my own borrowers but as a mortgage broker with dozens and dozens of lending sources, I am fortunate that I have so many lending sources to choose from; one of the best benefits of working with a mortgage broker.
While a lot of the big, national, retail banks will penalize "job juggling" borrowers for doing what they have to do to maintain financial stability in this unstable economy, there are other lenders (smaller, local lenders) that will work with "job jugglers" in qualifying them for a mortgage loan.
While it may seem that lenders these days are oblivious to the fact that some people are ambitious and strong-willed when it comes to doing what it takes to support themselves and further their professional careers, rest assured folks, there are other lenders that are not oblivious to this trend.
Today's real estate market can be really scary, which is why it's important to get as much information as possible before you start your search. The home buying process is not a simple process and it's because it can get really complicated and convoluted, that borrowers today need affordable loan options that are best suited for their own needs.
If you're a "job juggler" here in Los Angeles & Ventura counties and you're big, national, retail bank lender is giving you grief about your 60+hrs work weeks and/or your multiple jobs, contact me, Donne Knudsen at 805.2069123 or donne4loans@earthlink.net. I may be able to help and I would love to be able to assist you in choosing the most affordale home loan option for your needs.
Photos courtesy of flickr: paulawirth jpersons giacomomacias
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Donne Knudsen
Realtor® - CalState Realty Services
DRE#: 01364050 / NMLS#: 249822
805.2069123
Serving low-medium income individuals and families as well as first time buyers with both their real estate as well as their mortgage needs including down payment assistance
Los Angeles County -- Ventura County
© 2010 - All Rights Reserved
Interesting. I have never heard this term, but I definitely know people that do this and I can see why. Smart post.
Donne: I guess there are two ways to look at this, the optimist would say there are many opportunities and the pessimist would say one job is not enough.
When many lost their jobs or had their hours cut way back, a number of them found ways to supplement their income out of necessity. It is too bad that anyone's change in employment status does impact their credit, even if it is not their fault.
Debbie - I have had so many "job juggling" borrowers in the past few years who have no problem working more than one job or long work weeks. Yes, they are typically young 20-somethings but they're perfectly happy with their choices. So be it!
Jane - In many cases, one part time job is not enough but many young prospective homebuyers are ok with getting a second job. For the young, ambitious and educated who doesn't mind hard work for not much money, there are opportunities to be had.
Susan - Actually, most of my borrowers who are job jugglers, it's because they have two jobs that they're able to pay their bill and save money. Many of these folks actually have above average fico scores. It's the folks that are unemployed whose credit scores seem to be the most negatively affected.
Thx for stopping by folks; I really appreciate it. Have a good night everyone.
Sheez, now hard-working people who work long hours are getting penalized for their committment to their careers? If the big banks wrote out what they want in the "perfect" borrower, they might find that only one-half of one-percent of the population meets the criteria.
Thank goodness we have a better option - MLOs like you!!!!!
It's tough "in the real world" right now. I know many folks who are moonlighting to make ends meet.
Well said and relevant post Donne...gave this a nudge.
Donne....I had not heard the term before. It is too bad that these prospective buyers are doing the right thing by working an extra job & saving the extra money or paying down debt yet they get penalized for it.
So true Donne, many buyers don't know they are jeopardizing their loan chances with 'job juggling' It takes someone who understands this and lucky for your borrowers, you do. Nice post to explain this and to bring buyers the help they need.
I would think it would be easier to qualify someone with two jobs :)! At least they have income coming in! I am glad to see that the generation is actually more productive than I thought. I was under the impression that most of the younger generation expected handouts rather than having to work for anything!
Alison - The big, national, retail banks do have a list of what they deem the "perfect" and you are absolutely correct that many people do not fit in that little box. Fortunately for them, there are mortgage brokerages (like C2 Financial) who have numerous lending sources for borrowers who don't fit in the big, national, retail banks "perfect" borrower box.
Anita - It is so true that many people are working more than one job in order to survive. I've been seeing an increase in this trend for a few years now among many of my buyers, mostly the young 20-something buyers. Thx for the support; I appreciate it.
Christine - The only ones penalizing them for it are the big, national, retail, banks. There are other lending sources that don't have a problem with these types of borrowers.
Elizabeth - In this economy, it's no longer unusual for young people to have several jobs. While those that are "job hopping" will have a hard time establishing any stability in their professional careers, "job-jugglers" who are people who "juggle" more than one job are in a different sort of category. Both need help in getting qualified for a loan but I would much rather work with a "job juggler" than a "job hopper".
Brenda - One would think it would be easier because you're right, they do have income coming in. The problem is that the big, national, retail banks and their underwriters have been slow to adapt to this new trend. On another note, there are still plenty of "kids" out there who are completely clueless about how to "earn" the right to own a home. I still come across those numbskulls from time to time. That's a whole other post though.
Thx for stopping by ladies; I really appreciate it. Have a good day and a wonderful weekend too. :)
You can't win for losing is an old expression that comes to mind when I read this story.
Donne - I have never heard this term "job juggler" but I resemble what you refer to 60+ is the new 40 hour week.
Let's see - show property, write offers, make appointments, meet the home inspector, show leases, call banks, set-up termite, listing appointments whew.... 50-60 hours is for sure.
Jill - For some borrowers (those that choose big, national, retail banks), they will feel this way. However, it doesn't have to be like that. That is why I wrote this - to educate buyers that not all lenders will penalize them for working hard.
Ken - LOL I know, I trul believe that anyone who still has a job these days is working longer and harder than ever. Just tonight, I was on the phone with a client who is currently in escrow until almost 8pm and then spent another hour working on their file.
Thx for stopping by folks; I really appreciate it. Have a good night and a wonderful weekend too. :)
Donne, Ironic that we terms "job juggler" long are the days of when the father went to work had one job and the mother stayed at home with the kids and they had a car,weekend would go relax and spend quality time.....wait it was not that long ago....it was in the 50's & early 60's....
Endre - LOL at your scenario! Never was a reality of mine. I was raised by two college-educated, professionals who always held full-time jobs. Mom took the standard maternity leaves to have kids but always returned to work.
Even with two incomes, we were never rich but the folks did provide for us the best they could (with nine kids, it was challenging to say the least). They owned their own home, when we were young, we even had a vacation home in Big Bear (the folks sold it once we all became teenagers and stopped vacationing with them). We had clothes in our closets, food in the cupboards and more than enough healthcare for everyone.
Nowadays, so many parents struggle just to provide the bare necessities for their families. Actually, job juggling isn't just for Gen Y'ers anymore but for many families as well.