For people who are self-employed or seasonally employed, or those who are currently experiencing an employment gap, applying for a mortgage can be a particularly apprehensive experience. Mortgage lenders like easy employment verification and a few years’ worth of W-2s when they’re considering a mortgage loan, because they consider them less risky than other types of employment.
But as a borrower, you don’t want to be penalized for not having a job when you’re confident in your ability to repay a mortgage loan, or if you want to refinance your mortgage to lower your monthly loan payments. Lower loan payments can be especially helpful if you’ve recently lost your job and are worried about your monthly budget.
Unfortunately, many lenders hesitate to approve new mortgages or refinance loans for unemployed borrowers. While it can be challenging, it isn’t impossible.
Yes, You Can Still Get A Mortgage Or Refinance While Unemployed
You can purchase a home or refinance if you’re unemployed, though there are additional challenges. There are a few things you can do to improve your chances as well.
Many lenders want to see proof of income to know that you’re able to repay the loan. Of course, just because a mortgage applicant is unemployed does not mean they won’t repay the mortgage.
How To Refinance Or Get A Mortgage With No Job
Refinancing your mortgage while you’re unemployed isn’t impossible, but it will take a little more effort and creativity to accomplish. Unfortunately, lenders often won’t accept unemployment income as proof of income for your loan. Here are some strategies you can use to help you refinance your loan without a job.
Consult A Housing Counselor
If you’re not sure where to start, a great first step is to speak with a professional about what is needed to refinance your loan.