How to Get a Home Loan With no Job
A home loan with no job seems impossible. After all, the first question lenders usually ask is “how much do you make per month?” If you tell lenders you don’t have a job, you fear they will laugh in your face. The good news is there are ways to get a mortgage even without a job. They do require a little more creativity and legwork, but in the end, you get the loan you need.
Create a Positive History
A big part of the loan approval process involves looking at your history. Lenders like to see patterns. They look at your payment patterns, job patterns, and income patterns. If one of these patterns seems a little “off,” they may consider you high risk. However, if one out of three is risky and the other two overcompensate for the third, you ple:
John works freelance. He does not have an employer and he does not work consistently. He may go three months with no work. However, John regularly receives disability income. He also pays all of his bills on time, including his $1,350 per month rent. He does not rely on his income on a month-to-month basis. John has large sums of money in the bank. He has never had one late payment report on his credit report. He also has never had any negative economic events, such as a collection or bankruptcy. John’s credit score is over 700.
At first glance, you would think no lender would give John a mortgage. He doesn’t have a job. However, there are some strong compensating factors at play here. First, is John’s credit. The score is excellent and his history is clean. This shows that John pays his bills on time. Upon closer inspection with a Verification of Rent from his landlord, you would see that John also pays his rent on time. So he has a positive housing history. (tovább…)
