Can You Get A Mortgage Without A Job?
January 31, 2024 4-minute read
Author: Scott Steinberg
If you’re currently unemployed, you may be asking: Can I get a mortgage without a job? After all, lenders typically want to see proof of employment before they’ll approve a home loan. Similarly, you might also be wondering: Can you refinance your home if you are unemployed? Thankfully, the answer to these questions is yes, you can refinance or get a home loan without a job − although, you will need to satisfy some lender requirements.
Can You Get A Home Loan Without A Job?
Absolutely, yes. Retirees, divorced parties, and people with significant bank investments get loans every day. In fact, it’s possible to get a mortgage without employment as long as lenders are able to determine that you can repay the loan. As long as you’re able to provide a potential home mortgage lender with proof that you can to meet your monthly mortgage obligations regularly and on time.
See What You Qualify For
Congratulations! Based on the information you have provided, you are eligible to continue your home loan process online with Rocket Mortgage.
If a sign-in page does not automatically pop up in a new tab, click here
How To Get A Mortgage Without A Job
There are several ways that a prospective home buyer can get a mortgage without a job, either alone or in tandem with another individual.
You Have Other Reliable Income
As you might imagine, lenders may consider other reliable sources of income besides a full-time job when researching and determining whether or not you qualify for a mortgage. After all, there are many ways to bring in money these days, not all of which require you to work for an employer, let alone on a 9-to-5 basis. For example, some alternate sources of income that lenders may consider as they go about reviewing your application include, but are not limited to:
- Child support payments
- Alimony payments
- Rental property income
- Retirement income
- Investment income
- Divided payments
You Have Significant Cash Reserves
Alternately, if you have significant cash reserves, you may find that it’s enough for a lender to approve the home mortgage. For example: It’s not uncommon for those who’ve inherited large sums of money from loved ones or saved up significantly over the course of their career to have enough savings in the bank to meet monthly home loan obligations. In these cases, although technically unemployed, borrowers may be approved for a home mortgage if they have enough money on hand.
Have Someone Co-Sign
A co-signer is another individual (a parent, spouse, or relative) who agrees to assume financial responsibility for your mortgage if, despite being the primary borrower, you find that you are unable to make required payments. Loved ones, friends, and anyone otherwise willing to vouch for you that has sufficient income and a good credit score can serve as a co-signer on the home loan.
Work With A Housing Counselor
The Department of Housing and Urban Development (HUD)-approved housing counselors are professionals who can help evaluate your financial situation and prospective ways for paying off your home loan. As government-trained and -certified parties, they can work with you to improve your chances of obtaining a home mortgage, and to create a plan to help you with your mortgage obligations at little to no cost. Housing counselors generally work alongside local agencies whose mission it is to help provide housing to individuals with lower incomes, or who may be purchasing a property for the first time.
Types Of Home Loans For Those Who Are Unemployed
Of course, there are also specialized home loan types available for individuals who are unemployed as well.
Asset Depletion Mortgage
An asset depletion mortgage presents a way for you to qualify for a home loan by leveraging a substantial amount of assets, rather than relying on income that you might receive by way of steady employment. It essentially leverages your liquid assets as a lone or additional source of income to show that you possess enough funding to pay for the mortgage, and day-to-day living expenses, allowing you to qualify as a borrower. Mind you: Your assets are only used up-front to illustrate that you have the ability to make the monthly mortgage payments − you don’t have to cash them in the moment you sign on the dotted line.
No Income Verification Mortgage
There are also certain types of nonqualifying mortgages that do not require you to present income verification. These loans may be a good option for those who are self-employed or have seasonal income, although they may come at higher interest rates, and with additional terms and conditions attached. Note that Rocket Mortgage® does not currently offer these types of mortgages.
Can You Refinance Without A Job?
It’s also possible to refinance your home if you don’t have a job. Here are some of the options available to unemployed individuals looking to start a refinance.
An FHA Streamline Refinance is designed to help homeowners with an existing Federal Housing Administration (FHA) loan to lower their interest rates and reduce their monthly payments with less time and effort. You may be eligible to obtain one using a simplified process that requires you to meet a minimum of qualifying factors − and your lender may not even need to verify your income. This allows for an easier and more rapid approval process.
VA Streamline Refinance
A VA Streamline Refinance is backed by the federal government. However, it’s specifically designed to help veterans and service members refinance their existing VA loan from the Department of Veterans Affairs (VA) to obtain lower interest rates, smaller monthly payments or different terms.
The Bottom Line: It’s Possible To Get A Mortgage Or Refinance Without A Job
Again − it’s entirely possible to get a home mortgage without a job. In fact, as an unemployed individual, you will still have different home loan types and options available to you. As with the process of securing any home loan, obtaining a mortgage without a job requires having to meet certain eligibility requirements. Still, a lack of full-time employment is no show-stopping obstacle to homeownership − and you can start the mortgage process today with Rocket Mortgage.
Viewing 1 - 3 of 3
How To Buy A House With No Money Down
Home Buying - 11-minute read
Victoria Araj - February 01, 2024
If you’re struggling to come up with a down payment, you may still be able to qualify for a home loan. See your options for buying a house with no money down.
How Much Income Do I Need To Buy A House?
Home Buying - 7-minute read
Victoria Araj - June 23, 2023
Debating if you have the funds to purchase a home? Learn how much income you’ll need to buy a house and what lenders consider when reviewing applications.