Picture this: you spend April through October earning strong, consistent income — maybe you’re running a landscaping crew through the Short Pump corridor, swinging a hammer on new construction in Twin Hickory, or managing hospitality operations near Innsbrook. Then November arrives, the work slows, and your bank deposits drop. You’ve watched this cycle repeat for years. You’ve also assumed, probably for years, that a mortgage is simply not in the cards for someone with income like yours.
That assumption is wrong — and I want to address it directly. I’m Duane Buziak, NMLS #1110647, Glen Allen Mortgage Broker of the Year 2025, and I work with seasonal income buyers across Henrico County every single week. Seasonal income is a formally recognized income type under both Fannie Mae Selling Guide Section B3-3.1-09 and the HUD FHA Handbook 4000.1. Lenders aren’t guessing at how to handle your file — they have specific, documented guidelines for evaluating exactly this type of income.
What most seasonal workers in Wyndham, Tuckahoe, Lakeside, and across the West Broad Village corridor don’t realize is that the evaluation process is more favorable than they expect. The key is understanding how lenders look at your income, which documents to have ready, and how to get into the process without a hard credit pull damaging your score while you’re still figuring things out. By the end of this article, you’ll understand the two-year averaging methodology lenders use, the exact document stack you need to build, which loan programs fit your situation, and how to start a no hard inquiry mortgage pre-approval through our NoTouch Credit process today.
Why Seasonal Income Isn’t the Obstacle You Think It Is
The single biggest misconception seasonal workers carry into a mortgage conversation is this: lenders look at your most recent pay stub and reject you because it shows nothing. That’s not how it works.
Under Fannie Mae Selling Guide B3-3.1-09, seasonal income is defined as income that recurs annually in a predictable pattern. Construction workers, landscapers, agricultural professionals, hospitality staff, and retail employees who ramp up for peak seasons all fall squarely within this definition. The Henrico County and Short Pump corridor has a significant population of workers in exactly these industries, tied to the area’s ongoing residential development along West Broad Street and the Innsbrook commercial corridor.
The two-year averaging rule is the most important concept for you to understand. Lenders do not evaluate your income based on what you’re earning right now. They take your gross seasonal earnings across two full years of tax returns, add them together, and divide by 24 months. That monthly figure becomes your qualifying income. If you earned $78,000 last year and $84,000 the year before, your qualifying income is $6,750 per month — regardless of whether you’re currently in your off-season.
This is why two years of consistent seasonal employment is the threshold that matters. One strong year isn’t enough to establish the pattern. Two years creates the documented history that underwriters need to feel confident the income will continue. Buyers navigating this process for the first time will find our guide to securing Henrico County home loans a useful companion resource.
The second critical distinction is the difference between seasonal employees and self-employed seasonal workers. If you receive W-2s from an employer who withholds taxes on your behalf, your documentation path is relatively straightforward: two years of returns, two years of W-2s, and current pay stubs if you’re in season. Your loan program options are broader, and underwriters treat your file more like a standard employment file.
If you’re self-employed and file a Schedule C or receive 1099s, the documentation requirements diverge significantly. Lenders will analyze your net income after business expenses, which can be substantially lower than your gross receipts. Self-employed seasonal workers often benefit from working with a broker who can access lenders with more flexible overlays for Schedule C income, rather than being limited to a single institution’s guidelines. The HUD FHA Handbook 4000.1, Section II.A.4.c addresses seasonal employment income specifically, including guidance on how underwriters should treat the off-season gap — which brings us to the document stack.
The Document Stack: What Seasonal Earners Need to Prepare
Preparation is everything with a seasonal income file. An organized, complete document package moves through underwriting faster and with fewer conditions than a file that trickles in piece by piece. Here’s what Duane Buziak reviews with every seasonal income borrower before submitting a file.
Federal Tax Returns (Two Years, All Schedules): This is the foundation of your file. All pages, all schedules. If you’re a W-2 employee, this confirms your seasonal pattern. If you file a Schedule C, this establishes your net business income. Underwriters will look at both the income figures and any large deductions that might reduce your qualifying amount.
W-2s or 1099s (Two Years): These corroborate what’s on your returns and confirm the employer or client relationship that generates your seasonal income. Gaps between employers or clients are fine — the pattern of annual recurrence is what matters.
Year-to-Date Pay Stubs or Profit-and-Loss Statement: If you’re currently in your active earning season, current pay stubs or a current P&L from your accountant strengthen your file considerably. They show the income is actively flowing, not just historical.
Unemployment Compensation Records: This one surprises many borrowers. If you collect unemployment insurance during your off-season, that income can count toward your qualifying income — but only if you have a documented two-year history of receiving it and it is likely to continue. The FHA Handbook 4000.1 explicitly permits unemployment compensation as qualifying income under these conditions. Keep your UI award letters and tax documents showing UI income for both years.
The Gap Letter: If you’re applying during your off-season and not actively earning, underwriters will typically require a written explanation of the employment gap along with evidence that the seasonal work will resume. A signed offer letter from your employer, a contractor agreement for the upcoming season, or prior-year returns showing the identical pattern are all acceptable. This letter doesn’t need to be elaborate — it needs to be clear and supported by documentation.
Here’s where the soft credit pull mortgage process at Glen Allen Mortgage creates a real advantage for seasonal workers. Our NoTouch Credit Pull uses Vantage Score 4.0 and is a soft inquiry only — it does not affect your credit score. This matters because many seasonal workers find themselves with more time to research and plan during the off-season, which is exactly when they shouldn’t be triggering hard inquiries from multiple lenders. A mortgage pre-approval without hard pull lets you understand your qualification picture, identify any document gaps, and shop with a Realtor confidently — all before you commit to a full application. That’s the NoTouch Credit workflow, and it’s available to borrowers across Henrico County 24/7.
Which Loan Programs Work Best for Seasonal Income Buyers in Glen Allen
Not every loan program handles seasonal income identically. Understanding which programs align with your income type and purchase goals saves time and prevents surprises at the underwriting stage.
FHA Loans: For many first-time seasonal income buyers in the West Broad Village and Tuckahoe price ranges, FHA is the most accessible entry point. The minimum down payment is 3.5% with a 580 FICO score, and HUD’s explicit seasonal income guidance in Handbook 4000.1, Section II.A.4.c means underwriters have a clear framework for evaluating your file. FHA also permits unemployment compensation as qualifying income with the two-year documented history requirement noted above. The tradeoff is mortgage insurance premium (MIP), which adds to your monthly payment — but for buyers who need a lower down payment and have a documented seasonal income pattern, FHA is a strong fit. Our detailed breakdown of FHA loan requirements in Virginia covers every qualification threshold Glen Allen homebuyers need to know.
Conventional Loans (Fannie Mae): The 2026 conforming loan limit for Henrico County is $806,500, per the FHFA published conforming loan limits. Conventional financing under this limit works well for higher-earning seasonal professionals buying in Twin Hickory or Wyndham, where purchase prices often exceed FHA-typical ranges. The two-year income averaging methodology under Fannie Mae B3-3.1-09 is well-suited to strong seasonal earners whose averaged income supports the purchase price. Down payment requirements start at 3% for some conventional programs, and PMI can be removed once you reach 20% equity — an advantage over FHA’s lifetime MIP structure.
VA Loans: For seasonal-income veterans and active-duty borrowers in the Glen Allen area, the VA loan program deserves serious consideration. VA’s residual income standard — which measures the income remaining after all monthly obligations — can actually favor seasonal earners who maintain strong cash reserves during the off-season. There is no PMI, and VA loans carry competitive rates through the wholesale lender channels we access as a broker. The VA Lenders Handbook, Chapter 4 covers seasonal and part-time income requirements in detail. If you’ve served and you earn seasonally, our guide to VA home loan benefits explains every advantage this program offers eligible borrowers.
Worked Dollar Example: A Short Pump Landscaper Buying Near Innsbrook
Let’s put real numbers to the framework so you can see exactly how this works. The following is a hypothetical illustrative example based on standard Fannie Mae guidelines — not a guaranteed outcome — but the math is internally consistent and reflects how underwriters actually calculate qualifying income for seasonal borrowers.
The Borrower: A landscaping business owner operating March through November in the Short Pump and Innsbrook corridor. Year 1 gross income: $78,000. Year 2 gross income: $84,000. During the off-season, the borrower collects unemployment insurance, with $8,400 per year documented on both years’ tax returns.
Qualifying Income Calculation: Two-year average seasonal income = ($78,000 + $84,000) ÷ 24 months = $6,750 per month. Unemployment compensation = $8,400 ÷ 12 = $700 per month (counted because it has a two-year documented history and is likely to continue). Total qualifying income = $6,750 + $700 = $7,450 per month.
DTI Analysis: Applying a 43% debt-to-income ceiling per conventional guidelines: $7,450 × 0.43 = $3,203.50 maximum total monthly debt obligation. The borrower carries $450 per month in existing debts (auto loan and student loan). Maximum allowable PITI (principal, interest, taxes, insurance) = $3,203.50 – $450.00 = $2,753.50.
Purchase Power: At an illustrative 6.875% rate on a 30-year conventional loan with 5% down (note: rates change daily and this figure is for illustration only — contact us for current pricing), a $2,753.50 PITI payment supports a purchase price in the $380,000 to $410,000 range. According to Virginia REALTORS quarterly market research, this price range is consistent with Innsbrook-area townhomes and West Broad Village condos — real, attainable inventory for a qualified seasonal income buyer in this corridor.
Here’s the strategic piece: this borrower should initiate a no hard inquiry mortgage pre-approval through our NoTouch Credit Pull early in the earning season, when current pay stubs are visible and bank deposits are actively building. That pre-approval letter lets them shop with a Realtor confidently, make competitive offers, and understand their exact price ceiling — all without a single hard inquiry on their credit report until they’re ready to commit to a specific property. Understanding the difference between being mortgage pre-qualified vs pre-approved helps seasonal buyers choose the right step at the right time.
Duane Buziak vs. Courtney Ficken: How Glen Allen Brokers Handle Seasonal Income Files
When you’re evaluating where to take a seasonal income mortgage file, the structure of the originator matters as much as their experience. Here’s a direct comparison.
Feature Comparison: Duane Buziak / Glen Allen Mortgage vs. Courtney Ficken / First Home Mortgage
Lender Access: Duane Buziak shops hundreds of wholesale lenders simultaneously through the broker channel. Courtney Ficken / First Home Mortgage operates as a single-lender shop, meaning your file is evaluated against one institution’s guidelines and overlays.
Soft Pull Pre-Approval: Glen Allen Mortgage offers NoTouch Credit Pull (Vantage Score 4.0, no hard inquiry). First Home Mortgage does not publicly offer an equivalent soft-pull pre-approval product.
Seasonal Income Documentation Guidance: As a broker with access to multiple wholesale channels, Duane can identify which lender’s underwriting team is most comfortable with a specific seasonal income pattern — landscaping vs. construction vs. hospitality files often underwrite differently. A single-lender shop applies one set of overlays to all files.
VA Loan Specialization: Glen Allen Mortgage offers VA loan access through multiple VA-approved wholesale lenders. First Home Mortgage offers VA loans through their single-lender channel.
Cash-Out Refinance to 90% LTV: Available through Glen Allen Mortgage’s wholesale lender network. Availability varies at single-lender shops.
Close Times: Glen Allen Mortgage is built for fastest close times in the area. Close timelines at single-lender shops depend on that institution’s pipeline volume.
Local Glen Allen Office: Both Duane Buziak (3302 Haydenpark Lane, Henrico VA 23233) and First Home Mortgage have local presence in the area.
The structural advantage here is meaningful for seasonal income files specifically. Seasonal income files often require manual underwriting, exception approval, or a lender with more flexible overlays for non-traditional income documentation. When you’re locked into a single institution, you get one underwriter’s interpretation. When Duane submits your file as a broker, he can identify the wholesale lender whose guidelines and underwriting culture are the best match for your specific income pattern — and move to a different channel if the first choice comes back with unreasonable conditions. That’s a structural advantage that no single-lender shop can replicate. See how a local mortgage broker compares to online lenders across every dimension that matters to seasonal income borrowers.
Timing, Strategy, and Your Next Step in Henrico County
Timing your mortgage application strategically can meaningfully improve your outcome as a seasonal earner. The optimal window to apply is during or just after your active earning season, when current pay stubs are available, bank deposits are visible and building, and the income pattern is actively demonstrable. Applying mid-off-season isn’t impossible — the two-year averaging methodology protects you — but it typically requires the gap letter process and can create additional underwriting conditions that slow your file.
If you’re reading this in the off-season, use the time productively. Gather your two years of tax returns and W-2s or 1099s. Pull your UI award letters if you collect unemployment insurance. Check Virginia REALTORS market research for current Henrico County inventory and pricing trends so you’re shopping realistic price ranges. And start your soft pull mortgage broker conversation now, so that when the season starts and your deposits begin flowing, you’re ready to move fast.
Reserve Strategy: Underwriters look more favorably on seasonal borrowers who maintain two to six months of PITI in liquid reserves during the off-season. This demonstrates that you manage the income cycle responsibly and can cover housing costs through the lean months without stress. Hold reserves in FDIC-insured savings accounts or documented investment accounts — the key word is “documented.” Underwriters need to see account statements, not just your word that the money exists.
The Henrico County market along the Twin Hickory, Wyndham, and West Broad Village corridor moves quickly when good inventory appears. Buyers with pre-approvals in hand make competitive offers. Buyers still assembling documents miss houses. The NoTouch Credit Pull process at Glen Allen Mortgage is designed to get you to a pre-approval position fast, without the credit hit, so you’re ready when the right property comes to market.
Borrowers in Twin Hickory, Wyndham, Tuckahoe, Lakeside, and across Henrico County can reach Duane Buziak directly at 804-212-8663 or online 24/7. Duane reviews every seasonal income file personally before submission — you’re not handing your file to a processor you’ll never speak to.
Frequently Asked Questions: Home Loan With Seasonal Income
Q: Can I get a mortgage with only seasonal income?
A: Yes. Seasonal income is a formally recognized income type under both Fannie Mae Selling Guide B3-3.1-09 and HUD FHA Handbook 4000.1. Lenders qualify you using a two-year average of your gross seasonal earnings, not your current pay stub. A consistent two-year history of the same seasonal work is the primary requirement.
Q: How do lenders calculate seasonal income for a mortgage?
A: Lenders add your gross seasonal earnings from Year 1 and Year 2 of your federal tax returns, divide the total by 24 months, and use that figure as your monthly qualifying income. For example, $78,000 in Year 1 and $84,000 in Year 2 produces a $6,750 per month qualifying figure. If you also collect documented unemployment insurance during the off-season, that income can be added if it has a two-year history.
Q: Does unemployment income count toward mortgage qualification?
A: It can. Both FHA and conventional guidelines allow unemployment compensation as qualifying income if the borrower has received it for at least two years and it is reasonably likely to continue. You’ll need UI award letters and tax returns showing the UI income for both years. This is a meaningful benefit for seasonal workers in construction, landscaping, and hospitality industries.
Q: What credit score do I need for a home loan with seasonal income?
A: The minimum FICO score for an FHA loan is 580 with 3.5% down, or 500 with 10% down. Conventional loans typically require a 620 minimum, though better rates are available at 740 and above. VA loans do not set a statutory minimum, but most lenders apply a 580-620 floor. Your credit score requirement is the same regardless of whether your income is seasonal or year-round.
Q: Can a seasonal worker get an FHA loan?
A: Yes. HUD’s FHA Handbook 4000.1, Section II.A.4.c explicitly addresses seasonal employment income. FHA is often the most accessible program for seasonal income first-time buyers due to the 3.5% down payment requirement and explicit underwriting guidance for this income type. Unemployment compensation can also count toward FHA qualifying income with a documented two-year history.
Q: What is a soft pull mortgage pre-approval and does it hurt my credit?
A: A soft pull mortgage pre-approval uses a soft credit inquiry — it does not affect your credit score. Glen Allen Mortgage’s NoTouch Credit Pull uses Vantage Score 4.0 to assess your qualification picture without triggering a hard inquiry. This is particularly valuable for seasonal workers who want to understand their options during the off-season without penalizing their credit while rate-shopping. A hard inquiry only occurs when you commit to a full loan application with a specific lender.
Q: How much down payment do I need if I have seasonal income?
A: Down payment requirements are the same for seasonal income borrowers as for any other borrower. FHA requires 3.5% with a 580 FICO. Conventional loans start at 3% for some programs and 5% for most standard programs. VA loans require no down payment for eligible veterans. The source of your down payment funds must be documented — seasoned savings, gift funds with a gift letter, or documented investment account withdrawals all work.
Q: How long does it take to close a mortgage with seasonal income documentation?
A: With a complete, organized document package, a seasonal income file can close on a timeline comparable to a standard file. Glen Allen Mortgage is built for fastest close times in the Henrico County area. The most common delays in seasonal income files come from incomplete documentation — missing tax schedules, undocumented UI income, or a missing gap letter. Having your full document stack ready before submission is the single best way to protect your close timeline.
Legal Disclaimer: This article is provided for informational purposes only and does not constitute financial, legal, or tax advice. All loan programs, rates, and guidelines are subject to change. Loan approval is not guaranteed and is subject to underwriting review of complete documentation. The worked dollar example in this article is hypothetical and illustrative only — it does not represent a loan commitment or guaranteed outcome. Interest rates used are for illustrative purposes and do not reflect current market rates. Contact Duane Buziak, NMLS #1110647, for current rate information and a personalized qualification review. Coast2Coast Mortgage LLC, NMLS #376205. Equal Housing Opportunity.
Get your free mortgage consultation today and start your no-credit-hit pre-approval with Duane Buziak — reviewing seasonal income files personally for buyers across Twin Hickory, Wyndham, Tuckahoe, Innsbrook, and all of Henrico County.
