Home Loans Without Employment: Options & Requirements

While mortgage lenders typically want to see you have stable employment before issuing a home loan, if you have a steady income stream from another source and can document its long-term viability, you increase your odds of securing a mortgage.

Document Your Financial Situation

There's a difference between being unemployed and having no income. A mortgage lender wants to see a paper trail that shows where your money comes from. If you're self-employed, the recipient of a trust or receive a regular and predictable income from investments, provide documentation that demonstrates your financial stability. This might include bank statements, earnings statements and previous tax returns, along with profit-and-loss statements if you run a business.

Warning

If you're unemployed and have no regular income stream, your prospects for getting a home loan are poor. A husband or wife with good credit and a consistent, verifiable income who acts as a co-borrower or co-signer may increase your chances for getting funded.

Demonstrate Credit Worthiness

A stable credit history is vital to securing a mortgage without having a job. A mortgage lender wants to see proof you've responsibly handled credit in the past. This means an on-time track record for paying previous mortgages, car loans and revolving debt credit.

Be Realistic

If you have an unreliable income stream, you may want to reconsider taking on a mortgage. If your revenue stream dries up and you don't have a significant cushion to cover your financial obligations, a mortgage you can't afford can lead to a financial snowball that has an adverse effect on your credit and your future borrowing ability.

Tip

The Fair Credit Reporting Act, enforced by the U.S. Federal Trade Commission, requires credit reporting companies Equifax, Experian and TransUnion to provide consumers with free copies of their credit reports, by request, every 12 months. Request your copy to help you monitor your financial situation and improve your odds of qualifying for a mortgage in the future.