Can I use gift money for a down payment on a conventional loan?

Yes, for primary residence purchases. A donor — typically a family member — provides a signed gift letter confirming the funds are a gift with no repayment expectation. For conventional loans with less than 20% down, some of the down payment must come from the borrower's own funds unless specific exceptions apply. FHA and VA allow 100% gift down payment.

How long do I need to be employed to qualify for a mortgage?

Most lenders require 2 years of employment history in the same field, but it does not need to be the same employer. Recent college graduates entering their field of study can sometimes qualify with less than 2 years' history. Gaps in employment are evaluated case by case — a recent return to work typically requires 1 paycheck to document reinstatement.

Does getting pre-approved hurt my credit score?

A hard credit pull for a full pre-approval typically drops a score by 2–5 points temporarily. Multiple mortgage inquiries within a 14–45 day window are grouped into a single inquiry for scoring purposes, so shopping with multiple lenders in that window has minimal additional impact. Dan starts with a soft pull for pre-qualification, which has no score impact.

Can I buy a house with a 580 credit score in California?

Yes, through an FHA loan. The FHA minimum is 580 with 3.5% down (some lenders require 620+). Conventional loans generally require 620 minimum. With a 580 score, FHA is typically the most accessible path. Working on credit in the 60–90 days before applying can improve the qualifying rate significantly.

What is the minimum down payment to buy a house in Bakersfield?

Veterans can buy with 0% down using a VA loan. USDA loans also offer 0% down for qualifying rural and suburban properties around Bakersfield. FHA loans require 3.5% down (580+ credit). Conventional loans require as little as 3% down with qualifying income and credit.

Can part-time income be used to qualify for a mortgage?

Yes, if you have a 2-year history of part-time employment and the income is expected to continue. The income is averaged over 24 months. If the hours or rate of pay has recently decreased, lenders may use the lower current figure rather than the 2-year average.

What types of income can be used to qualify for a mortgage?

Lenders accept W-2 wages, self-employment income (with 2-year history), overtime and bonus income (with 2-year history), rental income (75% of gross rents), Social Security and disability income, pension and retirement income, alimony and child support (if court-ordered for 3+ years), and trust income. Non-traditional income types like IHSS, gig economy, and royalties require specific documentation.

How IHSS Income Is Calculated for a Conventional Mortgage, Guidelines and Gotchas

IHSS, In-Home Supportive Services, is a California state program that pays caregivers to provide in-home assistance to elderly, blind, or disabled individuals who would otherwise need to live in a nursing home. Many IHSS recipients are family members who care for a parent, child, or spouse. That income is real, it's recurring, and under Fannie Mae and Freddie Mac guidelines, it can qualify for a conventional mortgage, with one significant advantage.

Is IHSS Income Eligible for a [Conventional Loan](/loan-programs/conventional-loans)?

Yes. Fannie Mae and Freddie Mac both allow IHSS income to be used for conventional loan qualification. The key requirements are documentation of the income, a history of receiving it, and a reasonable expectation that it will continue. Because IHSS is tied to an approved care recipient and a state program, it generally meets the continuance standard if the recipient's care need is ongoing.

The Continuance Requirement

Lenders need to see that the income has a history and is expected to continue for at least three years from the closing date. For IHSS, this typically means documenting that the care recipient's condition is ongoing and that the IHSS authorization is current and expected to be renewed. A letter from the county or the recipient's doctor establishing the ongoing care need helps support the continuance argument. A 12-month payment history is also standard.

The Gross-Up: The Big Advantage

Here's the important part: IHSS income is non-taxable under California and federal tax law. Because it's non-taxable, Fannie Mae and Freddie Mac allow it to be grossed up by 25% for qualifying purposes. This means that if you receive $3,000 per month in IHSS income, the lender can use $3,750 per month as your qualifying income. This gross-up directly increases your qualifying loan amount. Not grossing up IHSS income is leaving money on the table, and it happens more than it should when a loan officer isn't familiar with the guideline.

Documentation Required

The lender will need your IHSS award letter showing the monthly benefit amount, 12 months of bank statements or payment stubs showing consistent receipt of the income, and documentation of the continuance of the recipient's care need. Some lenders may also want a current authorization letter from the county IHSS office confirming the provider's approval and payment amount.

FHA vs. Conventional Treatment

Both FHA and conventional loans allow IHSS income, and both allow the gross-up for non-taxable income. The qualifying mechanics are similar. The main difference is that conventional loans sometimes have lender overlays that make processing non-standard income more complex. Working with a broker who has experience qualifying IHSS caregivers, especially those who care for a family member, ensures the income is counted correctly and grossed up properly.

Complex Situations: Family Caregiving

The most common IHSS qualifying scenario is a family member being paid to care for a parent or adult child who lives in the same home. Underwriters will look at this carefully to ensure the income is real and documented. The care recipient doesn't need to be the borrower, they just need to be the person whose care generates the IHSS payment. As long as the payment flows to the borrower and is documented, it qualifies.

Common Mistake

Not grossing up the IHSS income. If a loan officer runs the qualification without applying the 25% non-taxable income gross-up, the borrower's qualifying income is artificially lower than it should be. This can cause someone to appear not to qualify when they actually do, or to qualify for a smaller loan than they're entitled to. Always confirm with your loan officer that the gross-up is being applied.

Why IHSS Borrowers Are Routinely Turned Down When They Shouldn't Be

Here's something that frustrates me professionally: IHSS income is solid, verifiable, and often long-term stable. A caregiver who's been providing services to the same family member for years has more predictable income than a lot of commission earners or gig workers. But a significant number of mortgage lenders, particularly larger banks with rigid automated systems, decline IHSS borrowers or misclassify their income in ways that hurt the qualifying picture.

The problem is usually one of two things. Either the underwriter doesn't know how to handle non-taxable income and applies the wrong guidelines, or the bank's system flags the lack of a W-2 from a traditional employer and triggers a decline. Neither of those is a legitimate reason to decline a qualified IHSS borrower.

The 25% gross-up rule exists specifically because IHSS income is tax-free. When a lender applies it correctly, a caregiver earning $3,500/month qualifies as if they earn $4,375/month. That's a meaningful difference in buying power. The lenders who handle this well are out there, but they're not the ones running TV ads.

My Honest Take on Who Qualifies and Who Doesn't

IHSS income works well for mortgage qualification when the payment history is consistent and the award letter is current. Where I see it break down is when the IHSS income is supplemental, meaning the borrower also has other irregular or undocumented income they're trying to combine. The IHSS portion qualifies fine; the issue is always the other income streams.

If IHSS is your primary or only income source and you've been receiving it consistently for two or more years, your path to qualification is more straightforward than you probably think. Call before you assume the answer is no.

Bottom Line

IHSS income qualifies for both FHA and conventional mortgages in California. The non-taxable status allows a 25% gross-up, meaning $3,000/month in IHSS payments counts as $3,750/month for qualification purposes. Proper documentation, the award letter and payment history, is the key requirement. If you're an IHSS caregiver considering a home purchase, make sure your loan officer knows to apply the gross-up. It can make a meaningful difference in what you qualify for.