Whenever an employee is identified as contract labor, it seems to cause problems with obtaining a mortgage in Sacramento. Underwriters often struggle with how to qualify these people. I have had a couple of canceled escrows in which the mortgage lender officer never even looked at the borrower's payroll stubs. If they had, they would have realized the borrower was contracted through a different employer.
But, sadly, no, they wait until the file is underwriting. After all inspections but loan have been removed. After completion of the appraisal. They let the underwriter discover the problem. Well, I learned about a new setback affecting some contract labor employees that can also cause an escrow to blow up. You can read more about this in my personal blog today at this link: Why a Nonprofit Employee Might Not Get a Mortgage.