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.
What Others Are Reading Right Now.
What Your Jeans Tell Her About You
Because for women, denim is truth serum.
15 Types of Tattoos Worth the Newfound Health Risks
That dumb bet you lost in college? It’s actually endearing.
15 Signs She Wants You to Come Talk to Her at the Bar
These not-so-subtle hints mean legit interest—and time for action.