Getting a mortgage loan is not easy. It can be a lengthy, complicated, and expensive process.
Mortgage lenders will comb through your financial status and documents to assess the risk of giving you a loan. And they will do an extremely thorough job of it too because lenders don’t want to make a mistake and lend money to someone who will likely have trouble paying back the money.
Some of the documents they’ll look over include your credit, debt, income, and assets (bank statements, investments, etc.). At the same time, mortgage lenders will also need to look at your employment status and history.
But what if you apply for a mortgage loan before you get employed? Or perhaps your spouse is the working spouse between the 2 of you, but you are the one applying for a mortgage loan.
Below we’ll answer the common question “can I get a mortgage without a job?”
So keep reading to find out if not having a job means your application will be rejected. Or can you still apply for a mortgage even if you are unemployed?
Can I Get A Mortgage Without A Job?
Yes, it is still possible to qualify for a mortgage loan even if you are unemployed. But it may not be easy.
There are a lot of scenarios wherein you can apply for a mortgage loan without a job. And we will discuss with you how it works in specific scenarios.
In our first scenario, let’s say that you are unemployed, but your partner is not. In a case like this, your chances of getting approved for a mortgage still depend on a few deciding factors.
Applying for a mortgage loan jointly with your partner will depend on your partner’s financial status and history. If your partner has a good employment history, a good credit score, a stable income source, and is low in debts, then most likely, you and your partner will be qualified for a mortgage.
Or let us say that in another scenario, you rely on someone else financially that is not your partner, for instance, a parent.
They are called co-signer. How mortgage lenders see it in this situation is similar to that of having a partner.
As long as your co-signer is financially stable and agrees to co-sign with you, your mortgage will most likely get approved.
But what if you are alone and you are unemployed?
For instance, let’s say that in the midst of your mortgage application, you lost your job, or your company closed down (for self-employed people). Or that you will apply for a mortgage without a job.
That still depends. If you have a stable alternate source/s of income like an investment account, coupled with a good credit score and a good debt-income ratio, then your chances of getting approved for a mortgage application are higher.
It is also advised to consult a housing counselor to help you with your budget. It is best to look for a housing counselor offered by the U.S. Department of Housing and Urban Development or HUD.
It is a good idea to consider an FHA loan as it works best for low-income borrowers. Or, if you have served in the military, looking for a VA loan is what’s best for you.