Can you get a mortgage without a job? If you do not have a traditional full-time job or are currently unemployed, receiving a house loan can be difficult. Our mortgage broker in Greater Austin, TX, can advise you on the options available in these situations.
Find Alternative Income Sources
You don’t need a traditional job to obtain a house loan, although the process becomes trickier without one. Some of the same criteria that a self-employed person uses to try to receive a home loan may work for someone who doesn’t have a job.
If you have a steady part-time income during a time when you don’t have a full-time job, you can use this information to help with the application process. If you aren’t employed traditionally, you might be able to use guaranteed alimony or child support payments as part of the borrowing application.
If you have non-traditional income sources, you need a lender who is willing to use some unconventional processes to help you obtain the loan.
Use Assets As Collateral
Can you get a mortgage without a job by using your personal assets? As a substitute for the income requirements from the lender, you can consider offering liquidated assets. This would be a type of non-income verification loan or an asset-depletion mortgage.
The lender won’t allow you to use assets like a classic car or a jewelry collection as collateral for property loans. However, if you have liquidated assets available, lenders may accept these as a substitute for income. Things like certificates of deposits, stocks, and mutual funds could qualify as assets the lender will accept.
If you own another property outright, the lender might consider using this property as collateral for your new mortgage loan application.
Make a Larger Down Payment Amount
Can you get a mortgage without a job by increasing the amount you make as a down payment on the mortgage loan? Using savings you have or other cash reserves could help you qualify for mortgages, even though you don’t have a current job.
It’s helpful if you also have a higher-than-average credit score when using this option. If you know you’ll have a new job within a few months, you can use this method now and replenish your savings later when you start working again.
Request Help From a Co-Signer
Even when you are between jobs, and it’s not the best time to purchase a home, you might have no choice but to seek a mortgage. Unemployed people can consider having a co-signer help guarantee the loan.
If the co-signer has verifiable income, this person can help with the application to borrow the money. If the co-signer has a poorer credit score than you, though, you could jeopardize your ability to obtain the money.
The co-signer takes on the risk of repaying the loan if you cannot pay it back. Once you obtain employment again, you could attempt to refinance the loan yourself, eliminating the need for a co-signer.
At Champions Mortgage, We Are the Local Experts in Alternative Income Mortgage Options
Can you get a mortgage without a job or when facing an unusual employment situation? Getting a home loan with no job is challenging but not impossible. Understanding the effect of how the credit score for a mortgage works in cases like this can require the help of a professional.
At Champions Mortgage, we go the extra mile for homeowners and home buyers across Texas, offering low rates that beat the credit unions. We also offer fast turnarounds for mortgage loans, providing results in less than 15 days. To learn more or to discuss your options, call us today at (281) 727-2500.
