Despite the fact that a higher "per hour" compensation may be present, one could easily disqualify themselves from a loan if they go from full-time "guaranteed" hours to "per diem" hours.  

EXAMPLE:

Borrower earns $20 per hour with 40 hours guaranteed per week, but then accepts a per diem opportunity to instead earn $35 per hour (when called upon).  In the eyes of a Borrower, they got a raise. In the eyes of the Lender, there may be months where the Borrower doesn't earn a penny.

Essentially, per diem means you are a "hired gun" with no guaranteed hours...and the lack of guaranteed hours could be the problem.

Over the years, I have avoided talking about the more detailed explanations of loan qualification leaving such discussions to professionals in that particular field.   Experts can give a better-informed answer.  And advice.  

Some special programs are for those below a maximum income level. I recently represented a buyer family in an attempt to purchase a home where the one of the requirements was that the family income did not exceed a certain level.

There were 80 submissions for the chance to buy the home.

Some local programs have a maximum income to qualify.

I'll be interested in the answer

Depends on the loan program.

Hello Rodney Downs generally it depends on the loan program.

Depends on the loan program usually. VHDA loans for example. We have Federally Targeted Areas of Economic Opportunity here where they allow lenders some flexibilty with programs.

 A probationary position requiring skills the work history does not support.
Example: Currently manufacture dentures in the basement and new position is regional sales represtnative on contingency income with the same company.

That will depend on the loan program the buyer qualified for. 

Is it a loan that limits eligibility for the loan based on some maximum amount of income?

Rodney,

You have excellent answers. A

Some good answers here.  I would have said never, but had never heard of these low income loans before.  Thanks for the learning opportunity!

Well I had a buyer who was just under the USDA limit once that certainly couldn't have qualified for the no downpayment loan she got with a raise... she was literally like $50 under the limit for a single person.  Of course the next year she had the house and got a raise.... all good.

loan programs with income caps

Max income on a loan type. 

New pay not guaranteed with hours or some slick variation.

That's really a great question for one of our mortgage officer members - Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi , John Meussner  or George Souto for starters

Jason E. Gordon gave a great example.  Another very easy example that comes to mind is with the USDA loan product - it is income driven and exceding a certain income in a certain area is an automatic "no" for the program.

Some down payment assistance programs are also set aside only for those within a certain % of AGI (adjusted gross income), usually comparable to local 'povery level' numbers.  Exceding the income threshold on these products can cause a borrower to no longer qualify as well.

Typically a raise is a good thing, but some programs have income caps, and lenders also care about consistency and "likelihood of continuance", so while a raise is nice, 'change' is often bad mid-process.

Dpwnpayment assistance programs have income limits that disqualitfy you at certain income levels.

I'd ask Jason E. Gordon 

Without knowing more, I'd guess that it had to do with the mortgage program they were applying for.  There are income "caps" on some mortgage programs.  The increase in pay could have pushed them over the limit for that program. 

Moving forward may have been impossible within another program possibly (?) ... and again, without knowing more details, I'm just guessing that was the issue.  There are many asterisks and rules that apply to specific mortgage programs, etc.

Hope that helps ... but if you have further questions, shout ...

Gene

Good Question