Imagine arriving at a port after a long journey, suitcase in hand. Instead of feeling excited about your vacation, you start worrying about mortgage pre-approval, debt-to-income ratios, and the unsettling thoughts like "What if I don't get approved?" or "What if I'm on a hitch when I want to close on a home?"

This is a reality for mariners, especially union seafarers whose pay structure is far from a typical 9-to-5 job.

Regular homebuyers often have steady salaries, predictable paychecks, and fewer surprises. In contrast, mariners face unpredictable hitch schedules, fluctuating overtime, and varying vacation pay, leading to different earnings reported to lenders. These complications not only make financing more difficult; they also bring personal anxieties, transforming what should be a positive step into nagging concerns like "Am I doing this right?" and "Will I get approved?"

For many mariners, buying a home comes with unique challenges:

• Income stability: Lenders want to see consistent earnings. If a seafarer works for eight months and is off for eight weeks, it raises red flags for underwriters. Even though unions report higher earning potential, actual pay periods can be inconsistent, creating roadblocks.
• Union dispatch uncertainty: Being on call and waiting for ships can make lenders hesitate.
• Down payment and savings pressure: Spending while at sea and irregular savings can leave less cash available for down payments or closing costs.
• Property management issues: If you're away for an extended hitch and purchase a home, who will manage the maintenance? How will you deal with problems? Is the home classified as a primary residence or an investment property by the lender? That classification can significantly affect your interest rate.

All these factors accumulate, creating a mental burden that most land-based buyers don’t face. You’re not just buying a house; you're acquiring a property you may not live in full-time, one you must manage remotely while ensuring you can afford payments, not just while at sea, but even if you eventually transition to a shoreside life.

Your union affiliation can be a major advantage, providing job security, benefits, and a support network. However, ironically, when it comes to mortgage processing, the estimated earnings reports from the union (often based on "potential" rather than actual worked time) can lead to discrepancies between what you know you earn and what the lender assumes.

Many lenders simply do not understand how mariner pay works, leading to significant issues during underwriting. They may misinterpret hitch rotations as employment gaps and incorrectly average income, lowering qualifying amounts. Union earnings reports, which reflect potential rather than actual income, can confuse underwriters who don’t know how to interpret them. Vacation pay and leave pay often get misclassified as irregular, even though they are reliable and contractually protected. These mistakes can inflate debt-to-income ratios, resulting in unnecessary conditions, worse pricing, or outright denials.

To compound the issue, underwriters unfamiliar with maritime work may misclassify a mariner's home as an investment property simply because the borrower is away for long periods. Some may request documents that unions don’t provide or pay stubs for time off, creating impossible situations that delay or ruin the loan process. Consequently, many qualified mariner borrowers are denied funding not because they can't afford a home, but because the lender couldn’t accurately assess their income. A lender knowledgeable in mariner pay structures, protected leaves, documented rotation patterns, and union dispatch systems can accurately present your case and avoid these errors. For many mariners, finding the right lender may be the key between closing successfully or losing a home.

In summary, while your union offers a strong support system, your financing needs a steady direction.

Bridging the gap: How smart mariners overcome challenges

Having helped hundreds of mariners across the country with this process, here are some strategies that consistently yield success:

1. Document everything: Keep thorough records of your hitch history, union dispatch logs, overtime, and vacation pay. The clearer you are, the more confident a lender will feel.
2. Work with a knowledgeable loan officer: Many bad experiences we’ve encountered involve mariners who went with traditional banks and ended up denied on closing day because the lender didn’t understand their income situation.

"A fool learns from mistakes, a wise person learns from the mistakes of others."

We recommend partnering with an independent lender who understands your lifestyle and has experience working with mariners. Parker Couch at Barrett Financial knows how marine income cycles operate, the intricacies of union earnings, and how to present your financial case in a way that resonates with underwriters so you can close on time.

3. View the home as your “shore base”: Even if you're away half the year, designating the home as your primary residence (instead of an investment property) can lead to better terms, smoother underwriting, and reduced financial stress.
4. Establish a contingency fund: Hitches change, overtime fluctuates, and unexpected costs arise. We often suggest that mariners take vacation pay before starting the home-buying process to enhance income documentation and bolster savings.
5. Use a power of attorney: This allows a trusted individual to sign important documents on your behalf while you’re away. If a wet signature is needed, they can sign and finalize the property purchase.
6. Choose the right location and type of home: Opt for a reasonable, manageable home (less maintenance, tax-friendly state, ideally near your home port) to ensure flexibility and reduce stress, setting you up for long-term success whether you stay shoreside or not.

Here’s a truth many financial advisors overlook… Homeownership may not be right for every mariner. Many of our maritime clients prefer flexibility and community as they transition to shoreside living, enjoying time with friends or living in modest apartments with little maintenance after returning from sea.

For others, real estate represents a way to establish ownership and perhaps build wealth through house hacking, appreciation, or long-term rentals.

Both choices are completely valid. As the saying goes, "Don’t let others dictate your decisions!"

Your next step: Act now!

If you're reading this and asking, "Okay... how do I make this work?", consider this your call to action.

Homeownership can feel daunting, but with the right plan, guidance, and support, you can navigate the process successfully.

At Shoreside Wealth Management, we help mariners through the real estate journey, assessing various types of properties: residential, commercial, multifamily, etc. Many clients select Parker Couch at Barrett Financial as their trusted lender because he understands how to structure financing for those with non-traditional income.

Bring Parker your hitch logs, union dispatch records, and vacation summaries, and he will develop a loan plan tailored to your life at sea.

We've enjoyed engaging with gCaptain readers, as Shoreside Wealth Management specializes in guiding maritime professionals in financial planning, tax-smart strategies, and major life decisions like homeownership or transitioning to shoreside life.

Contact Shoreside Wealth Management for reliable advice, a collaborative partnership, and a well-structured approach to tax-smart financial planning. We're here to support seafarers, so don't hesitate to reach out today for a free consultation.

Securities and advisory services provided through LPL Financial, a registered investment advisor, Member FINRA/SIPC. Shoreside Wealth Management operates independently from LPL Financial.

LPL Financial does not provide legal or tax advice. The content here is for general knowledge and is not intended as specific advice for individuals. You are not required to use Parker Couch at Barrett Financial’s services and may choose any qualified expert for mortgage and lending assistance. Parker Couch at Barrett Financial is not connected to LPL Financial or Shoreside Wealth Management.