Buying a Home Without a Job
Buying a home is no easy task, especially if you are trying to do it without a job. Fortunately, there are a few steps and strategies you can use to make it happen!
1. Look at Loans That Don’t Consider Employment Status
There are actually quite a few loan options available for those buying a home without a job. Some loan products focus on different qualifying factors than income, such as credit score or assets. A few to look for include:
- Portfolio Loans: These are loans that are funded and managed by a single lender. Generally speaking, these loans require a 20-30% down payment. Plus, the lender does not consider employment status when making their decision.
- Guarantor Loans: These loans allow a large third-party individual to act as a financial guarantor and assume responsibility in the event of non-payment. This can be a good option if you have a farm equipped with a reliable working capital.
- No-Income Loans: If you have very good credit and a steady income stream–but, no job–you may qualify for a no-income loan. To qualify, you must be able to document and prove your sources of income.
2. Salary Substitutes
If your credit is in order and your chosen loan doesn’t require traditional income for qualification, look for methods to document other income sources. Methods include using self-employment income, showing proof of Social Security or disability income, demonstrating trust fund income, and if able, using income from investments, retirement income and alimony or child support.
3. Get Your Down Payment from Other Sources
Even if you are successful in obtaining financing without a job, you still need to make a down payment. If you have sufficient savings, then cover the down payment amount with your own money. You can also tap into other resources, like gifts, grants, or money borrowed from friends and family.
4. Think Outside the Box
When it comes to buying a home without a job, it pays to think outside the box. Consider bartering, providing a parcel of property as a down payment, or paying off a chunk of the loan at closing.
Buying a home without a job can be done, though it requires some outside-of-the-box thinking and plenty of careful planning. With some careful consideration and creativity, it is entirely possible to take on the home-buying challenge without employment.