How To Get A Home Loan Without A Job
How to get a home loan without a job is a question asked by many individuals. Despite the fact that guidelines for obtaining home loans are getting stricter, there are still ways to obtain a mortgage without being employed. This is because getting a home loan is based on several factors, including credit worthiness and income. However, these methods of getting a home loan without a job are for those who wish to refinance or have some type of viable income.
- Income. As long as he has some type of income, he may be eligible for a home loan. Income can include alimony, child support, disability,self employment and any other form of legal, regular income. However, to get a home loan without a job, he must be able to show proof of such income. Tax returns and award letters are typically accepted as legitimate proof.
- Credit. Although many individuals with bad credit are eligible for some type of mortgage, this may not be true for the unemployed. When trying to obtain a home mortgage without a job, good credit may be necessary. Eliminating debt, making payments on time, and keeping the debt to income ratio proportionate is very important.
- Collateral. Those that are turned down for a standard mortgage because they are unemployed do have other options. Providing that he can make adequate payments and cover the costs associated with buying a home, collateral may be used to help secure a home loan. Collateral is often personal property that ensures that the bank gets a return on the investment. If he fails to make payments, the lending institution can seize personal property serving as collateral.
- Co Applicant. To increase the odds of getting a home loan without a job, he should consider having someone co apply. The co applicant is typically a spouse or another family member that lives within the home, but this is not a requirement. Some may also find it easier to obtain the funding to purchase a home despite unemployment, if they have a cosigner. The cosigner guarantees that they will be responsible for the mortgage if the applicant defaults on the loan.
- Other. Obtaining a home loan without a job is very similar to obtaining other forms of credit without a job. However, when these methods do not work and income is not adequate, he should consider obtaining gainful employment and building a solid credit history. Those without sufficient income or a credit history will most likely not be able to obtain a home loan without a job.