Can You Get a Mortgage Without a Job?

The majority of borrowers who take out a mortgage are employed. However, you may have a question concerning the possibility of getting a mortgage for the unemployed. Generally, crediting companies want to deal with consumers who have a steady source of income or are self-employed.

Proof of employment is one of the requirements when you apply for a home loan. Yet, you might also
get urgent money as a mortgage without an official job, but you will have to meet certain lenders’ demands. In this article, we are going to talk in detail about this process and when it is worth trying.

How to Get a Mortgage Without a Job

You have a possibility to obtain a mortgage even if you are temporarily unemployed, have no financial support, or have been laid off. Many consumers such as divorced parties or retirees can qualify for a home loan as well.

According to the CFPB, the minimum sum a borrower needs to have saved for the home purchase is 3% of its purchase price. If lenders check your creditworthiness and have enough evidence to believe you can afford to repay this mortgage, your application may be approved.

It’s important to conduct this process carefully, check the interest rates, and follow all the necessary steps to provide a potential crediting partner with proof that you can return the money on time and make regular home loan payments without issues.

Step 1. Check the Requirements

The first step is to assess the demands of the crediting company. Keep in mind that lenders want to find a solid investment and ensure their funds will be returned. When they approve your request for a home loan with certain interest rates, they usually have particular demands and eligibility criteria.

Sometimes, borrowers will face stringent income checks or strict documentation requirements after applying for a home loan.

In order to know what requirements you need to meet, it’s better to contact several service providers or local banks and compare their demands. Some of them may ask you to get a co-signer who is a person with a built-up credit history and a stable income source. Other financial institutions may want you to have additional sources of income to verify that you can afford to make regular loan payments.

Step 2. Consider Your Sources of Income

You can utilize other sources of income to help you qualify for a home loan with decent interest rates. Your options aren’t limited to just a regular full-time job.

Additional sources of income can include retirement benefits, public assistance, disability, child support, alimony, unemployment benefits, and U.S. Department of Veterans Affairs (VA) benefits. Of course, some demands should be also met for this income to qualify.

Some banks or lending companies will ask you to prove that you are getting these benefits or additional income for a certain period, usually for several years. Pay attention that such financial assistance as unemployment benefits is short-term but still may be utilized as extra income. If you are temporarily out of work, such as due to seasonal unemployment, you may use this option.

Step 3. Consider Co-Signer

Is your credit history limited? Some borrowers have poor scores and are offered sky-high interest. If you have applied for any crediting tool before when you didn’t have a stellar score yet, then you probably know why you may need a co-signer.

This person has an excellent or good credit score and can take responsibility for the debt payoff if the borrower has trouble with debt repayment.

If the lender demands you to have a co-signer, the name of this person will be attached to your home loan. This person can be your friend, relative, or parent. It may be risky for the co-signer to sign the agreement with you and take on liability for your home loan.

If you default or don’t have enough financial means to make on-time payments, the co-signer will have to make them for you.

Step 4. Get a Non-Revocable Employment Contract

Sometimes, the lenders accept a non-revocable employment contract from the borrower. This contract needs to guarantee at least a year or more of your employment. Keep in mind that this option isn’t suitable for all borrowers. The majority of borrowers will present proof of having additional sources of income.

Usually, teachers, doctors, and pilots are those who get such employment contracts. If you have obtained it and the contract is accepted by the crediting organization, you will be able to close up to 60 days before obtaining your first payment.

If this possibility isn’t suitable for you, it’s better to get a co-signer or search for other sources of income to get the lowest interest rates.

Step 5. Try Relocating

Sometimes, relocating for a new job can result in an approved home loan request. This option means you can secure a job offer letter. You may be temporarily unemployed, have no financial support, and are in the process of changing positions.

Whether you have chosen to start working for another company or relocate to another place, many lenders will accept job-offer letters. Such letters can also become proof of your future income.

In any case, the lenders will want to have a guarantee that the funds will be returned to them. Hence, there are certain limitations connected with this offer. Check with the service provider or your local bank about what restrictions might be. It can be a decent option to prove you will afford a home loan and will be able to make regular payments.

Types of Home Loans for Those Who Are Unemployed

There are several types of home loans for unemployed consumers. If you don’t have a job at the moment, you may still opt for a suitable way of getting financial assistance and funding a home purchase.

Don’t forget that there are additional expenses apart from the principal and the interest. The data states that the closing costs for a mortgage can range from 2% to 7%.

Lending institutions offer no income verification home loans and asset depletion mortgage tools for such borrowers. Lenders are usually reluctant to issue the funding without seeing a guarantee or at least some job security.

Although you may find a co-signer or provide a job-offer letter, not every creditor will accept them. You have a chance to qualify for a home loan before you land a new job under some circumstances. Here are the details of these financing details.

Asset Depletion Mortgage

This is one of the relevant options for consumers without a steady source of income. You may choose an asset depletion mortgage with affordable interest rates. What does it mean? It is a way of qualifying for a mortgage by engaging most of your assets. This way, you don’t rely on your steady income but on your assets. Your liquid assets are engaged as a lone.

In other words, they become an extra source of income to demonstrate that a borrower owns enough financing to pay for the home loan together with daily costs.

Take into consideration that the assets that are leveraged up-front are only used to show that you can afford to make regular payments. Thus, there is no need to cash the assets when you sign the agreement.

No Income Verification Mortgage

What should you do if you can’t present income verification? Unemployed consumers also have the possibility to become homeowners and obtain a home loan even without having a stable source of income.

There are some kinds of non qualifying home loans. For instance, you can choose a no-income verification mortgage.

This lending tool can be a decent option for borrowers who have seasonal income and those who are self-employed. Have a close look at the interest rates, though. You may have to deal with higher interest and other terms of the loan. It’s necessary to shop around to find an institution that offers this type of mortgage.

What to Consider Before Getting a Mortgage without a Job

You need to take some time to check all your options before you select a certain lending tool. Don’t rush to sign the very first contract you are offered. The terms of the mortgage and interest rates can be very different. You aim to find the most suitable offer with the lowest rates.

Remember that it will be extremely challenging if you are unemployed, as lenders want to approve a request for a home loan without taking on increased risks. Unemployed borrowers are considered high-risk so the lenders may add you risk as well.

It can be done in the form of:

  • Larger down payments
  • Strict approval demands
  • Lowered borrowing ability
  • High-interest rates
  • Short-term loan lengths

Similar downsides can be when you apply for any other unsecured loans or personal loans while not working. Consider your risks when you are about to sign an agreement for a home loan without a steady job.

Remember that you will have to make regular loan payments. Defaulting on the home loan may have negative outcomes for your credit rating.


Some banks will agree to issue funding for unemployed borrowers. You may get a no-income verification mortgage or an asset depletion home loan.

Yes, you may get a home loan if you have a part-time or seasonal job. Besides, self-employed consumers can also get approved for a mortgage. Take into account potential downsides and higher interest rates before you accept the offer.

Search for the bank or crediting institution or the best one of lenders that will approve your request without steady employment. Your assets may be leveraged for this purpose as the lenders take on increased risk if they approve the application of an unemployed person.