Is it Possible to Get a Mortgage Without a Job?
It is a possibility to obtain a mortgage loan or to refinance your current home loan when you are currently unemployed for whatever reason, be it a gap in employment, having enough wealth not to need employment, or making money from other streams of income.
There will be a different set of challenges to face as compared to applying for a loan when you are traditionally employed for a substantial amount of time. Lenders want to be able to verify proof of financial stability for the purpose of proving a borrower is highly capable of repaying the loan.
Applying for a Mortgage or Refinance Loan with No Job
Here are some strategies you can use to help qualify for a mortgage when you are not currently employed by the traditional means of holding a steady full or part-time job.
Speak with a Qualified Mortgage Professional
Obtaining a mortgage without current employment will mean that you need to look outside the box. The best plan of action in talking with a mortgage professional is to find a mortgage broker that specializes in finding loans in less than traditional ways.
Mortgage brokers make it their job to know about all of the current mortgage options available to borrowers, especially on the state and local level in which they work. They will have knowledge of what is currently available to certain types of buyers. And some brokers make it their main focus to help buyers in more unique situations to secure loans they may not know even exist.
It is a good idea, in this situation, to speak with a mortgage broker that specializes in non-QM mortgages. These are non-traditional loans that allow a different means of verifying a borrower’s ability to repay a loan.
Gather Your Proof of Reserve Funds
To qualify for a mortgage from a lender offering a non-QM mortgage, you will need to have proof that you have a substantial amount of reserve funds in your bank account to cover the loan payments. Or provide proof that you bring in income in other ways than from being employed through a job or owning a business.
This could mean providing bank statements to show your account has plenty of reserve funds. It could mean showing documents to prove that you make money from investments or receive steady payments from an inheritance fund.
In this scenario where a person is not a business owner or employed steadily, a lender will most often want to verify that you have at least six months’ worth of payments in reserve.
Using a Non-revocable Employment Contract
If you are currently just between jobs and getting ready to start a new position, you could try to use a non-revocable employment contract. This document is supplied by your future employer to guarantee that you will have steady employment under them for a specified amount of time. This method can work for certain types of jobs and is worth asking your mortgage professional if it can be considered.
For more information on all non-QM mortgage loan options in Mission Viejo and getting a mortgage without a job, please contact me at any time.
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