There’s no arguing that having a job means you’re more likely to get approved for a mortgage. However, getting a mortgage without a job isn’t impossible, so if you’re gainfully unemployed and on the hunt for a house, check out these tips below.Click here to get today’s latest mortgage rates (Feb. 22, 2019).
1. Check the requirements
Every lender is different, so make sure you reach out and see what your lender’s specific requirements are.
Remember that lenders might have different requirements, but they all share one thing in common—you have to have a reliable source of income. So if you’ve been making any sort of money from side projects, now would be a good time to share that fact.
2. Reserve funds
If you have fat stacks of cash lying around, snap a few selfies and send it over to the lenders to prove you can pay your mortgage in the time remaining until you find a job. You can also use non-photo documentation (e.g. bank statements) to prove your worth.
3. No documentation (no doc) mortgage
One way to take the focus off of your unemployment is by submitting what’s called a no doc mortgage. With this type of mortgage you don’t have to submit information about employment or annual income. Instead, the lender is focusing on your credit score, and whatever you’re using as collateral to secure the loan.Click here to get today’s latest mortgage rates (Feb. 22, 2019).
4. Non-revocable employment contract
If you have a job lined up, you can ask your employer for a non-revocable employment contract, which guarantees employment for a specified amount of time. But be warned, these contracts rarely apply to those who aren’t pilots, doctors, or teachers.
If you have to make a big move for your next job, it’s possible your lender will understand the situation and approve your loan. In other words, start looking for a job far, far away.
6. Ask for help
While the other options are doable by yourself, this strategy requires another person. It’s fairly simple: if you can’t pay now, have someone you know help you out. They can either co-sign the mortgage, or they could just lend you some cash. Just be careful who you ask, because they might show up at your doorstep ten years later like you owe them something.
- Newly self employed? Qualify for a mortgage without 2 years of tax returns
- 3 ways to overcome a high debt-to-income ratio
- Almost there: little credit score tweaks to get the score you need for a mortgage