Buying a House with No Job
It may seem intimidating to try to buy a house without a job, but it is possible. Whether you are out of work temporarily or are in between jobs, there are steps you can take to secure your future and get into the home of your dreams.
Examine Your Finances
The first step to buying a house with no job is to take a look at your current financial situation. Estimate your liquid assets, such as savings and investments, and educate yourself on the mortgage options are available to you. This will help you have realistic expectations and better prepare you for the process.
Explore Available Mortgage Options
Next, investigate mortgage options available to those without a job. Government-insured FHA loans or VA loans are two popular choices, as they typically require just 3.5-5% down. You can also look into a loan backed by the US Department of Agriculture; these typically require no down payment.
Check Your Credit Score
Before you apply for any mortgage, it’s a good idea to check your credit score. Your credit score will impact your ability to get a loan and how favorable your terms will be. If you find errors or anything that seems amiss, contact the credit bureau and dispute them in writing.
Have a Other Sources of Income
Having other sources of income shows potential lenders that you have the means to make payments if the worst should happen. Relying solely on unemployment insurance, Social Security, or disability insurance can make it difficult to get a loan, but having multiple streams of income will help strengthen your case.
Get a Cosigner
Finally, if you cannot secure a loan on your own, you may have to consider getting a cosigner. A cosigner is someone who is willing to sign the loan along with you to help you get approved. It’s the cosigner’s responsibility to foot the bill if you are unable to make payments.
Buying a house without a job is possible if you educate yourself, explore your options, and use other resources to strengthen your case. With the right preparation and research, you can make it happen.