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Can You Get A Mortgage Without A Job?

Scott Steinberg4-minute read

September 15, 2022

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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 House Loan Without A Job?

Yes, absolutely: Many individuals such as retirees, divorced parties, and those with significant investments in the bank receive one every day. In fact, it’s eminently possible to get a mortgage without a job, so long as lenders are able to determine that you can, in fact, repay the loan. In effect, so long as you’re able to provide a prospective home mortgage lender with proof that you’re able to meet your monthly mortgage obligations in regular and timely fashion, you should be able to get a house loan.

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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:

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 credit 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 If You Are Unemployed?

It‘s also possible to refinance your home if you’re unemployed.

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Refinance Options For Those Who Are Unemployed

Unemployed individuals have options for refinancing their home without a job should the need arise.

FHA Streamline

An FHA Streamline Refinance is designed to help homeowners with an existing 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 servicemembers refinance their existing VA loan to obtain lower interest rates, smaller monthly payments or different terms.

The Bottom Line

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 journey to getting preapproved today with Rocket Mortgage if you are ready to begin the home buying process.

Get approved to buy a home.

Rocket Mortgage® lets you get to house hunting sooner.

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Scott Steinberg

Hailed as The Master of Innovation by Fortune magazine, and World’s Leading Business Strategist, award-winning professional speaker Scott Steinberg is among today’s best-known trends experts and futurists. A strategic adviser to four-star generals and a who’s-who of Fortune 500s, he’s the bestselling author of 14 books including Make Change Work for You and FAST >> FORWARD. The CEO of BIZDEV: The Intl. Association for Business Development and Strategic Planning™, his website is www.AKeynoteSpeaker.com.