Can You Buy a Home Without a Job?
When it comes to stressful life events, purchasing a home can be right up there. The majority of folks will need to consider their employment status, as it plays a big part in the process of securing a mortgage. It can be a little intimidating to shop for mortgage lenders and for a real estate agent if you don’t have a job. The good news is that it is possible to buy a home even if you don’t have a job. Here are some tips to follow if you’re trying to purchase a home without full-time employment:
Gather Your Financial Documentation
Before you even start thinking about applying for a mortgage, you’ll need to bring your financial documents in order. Make sure that you gather your bank statements, investments accounts information, court-ordered alimony and child support, account statements, and other such documents to prove your income.
Consider Alternate Sources of Income
If you are currently unemployed, you’ll still need to apply income guidelines in order to qualify for a loan. In this case, alternative sources of income like investments, alimony, and child support, as well as rental income, pensions and annuities, and Social Security can all be used as a form of validated income. However, you’ll need to provide relevant documents in order to prove them.
Look For Assistance
If you’re having a tough time financing because of your employment status, there are some options available to you. You can look for grants and other assistance programs offered by local and state governments, as well as through the Federal Housing Administration.
Seek Specialty Lenders
If you don’t qualify for assistance and you’re overwhelmed by the thought of trying to get approved for a loan, you may be better off with a specialty lender. Keep in mind that these loans come with higher fees and higher interest rates, but they are available to those with a more unconventional income and employment situation.
Save Up For a Down Payment
If you don’t have a job, the very first step should be to put together a budget and save up for a down payment. Not having a regular income will make lenders uncertain, so it’s important to demonstrate you have the means to make your payments on time.
Take Professional Advice
It’s not a bad idea to get a professional to help and guide you through the process. An experienced financial advisor or real estate agent can provide valuable insight on the best way to go about buying without a job.
If you need to buy a home without a job, the key is to be prepared, be flexible, and do your research. It may be daunting, but with the right planning, it can be done.