Unemployed and Homeless? Here's How to Buy a House With No Job

Written by
Rebecca Smith

Published
Oct 23, 2018

Oct 23, 2018 • by Rebecca Smith

Have you been living off the grid or working from project to project? If so, you may think it's impossible for you to get a house.

Don't assume your chances are next to nil, though. Even if you're currently homeless or unemployed, there are ways to qualify for a mortgage.

True, typical loan-givers are looking for steady employment to prove you're up to the challenge of paying for a home. But just like your a-typical housing or work situation, there are other ways to get a job done.

Interested in learning more? Here's everything you need to know about how to buy a house with no job.

Think Outside the Box

First, to get a house without a job, you'll have to stop thinking like a regular full-timer. Simply put, you'll have to go about things differently in order to get the mortgage you're after. Knowing things are going to be different is the first step to getting what you want.

Organize Your Proof

Next, you need to organize. If you've been working various jobs, chances are you've got some sort of proof of that (if not, you should!).

All documentation, payment receipts, proof of income, and other job-related materials should be gathered in one place. Organize them all by placing all documentation for a single job in a designated folder.

Make sure you have all the helpful information you can, including who you worked for, what you did, what you were paid, and when you did the work.

Like we said before, this is different than if you had a regular job. It'll take more work than downloading a pay stub, but the work is worth your time.

Shop Around

There are plenty of lenders to go around, so don't think you're limited to only one. Check out your options and compare their requirements.

Some lenders will have requirements you don't meet. That's inevitable. However, there will be lenders who are willing to work with your situation.

No matter who you go through, though, you'll have to prove that you have an income you can rely on. That doesn't always mean you have a regular job. That does mean you have a steady source of money coming in from somewhere, though.

Know Your Credit Score

If you don't already know your credit score, find out what it is. Mortgage lenders will want it, so it's best you know what it is. They won't get that number from you, but it'll help you know where you stand.

If you have a bad credit score, your chances of getting a mortgage will go down. If nothing else, you won't be offered as good of interest rates as you would if your credit score was good.

A lower credit score doesn't make getting a mortgage impossible, but it's best to do what you can to raise your score before seeking a lender.

Pay off those Debts

If you have any credit cards that aren't paid off or other existing debt, get rid of it as quickly as possible. In order to get a mortgage without a job, you've got to be able to prove that you don't need one.

If you're in debt, it won't look like you can live without a job. So minimize your debts before applying for a mortgage. If you don't, you're likely wasting your time.

Gather References

References can be helpful when proving income. Get names and contact info and provide them to your potential mortgage lender. Documentation is great, but references will back up what you've presented on paper.

Pad Your Savings Account

Do you have money in a savings account? If not, you'd better get on that. Lenders will want to see that you can support yourself if something goes wrong with your employment. They'll especially want to see that if you aren't traditionally employed.

Aim to have a few months of living expenses set away. That way your lender will see you can take care of business if you don't have a gig for a month or two.

Let Your Partner Take the Lead

If you're looking to buy a house with someone else who is employed, let them be the one to head up getting the mortgage. This will save you a lot of time and hassle.

If there is an income that can easily be proven, go ahead and use it. Otherwise, you'll need to go through the steps we've already mentioned.

Use a Co-Signer

If you aren't getting a mortgage with anyone else, you can still use a friend or family member when getting a mortgage. You can do this by adding a co-signer to your loan.

Is someone co-signs on your loan that means they guarantee that it will be paid even if you can't pay it off. This isn't meant to be used as a crutch (that could lead to all sorts of awkward and strained relations). But having a co-signer shows your lender that someone else knows you're able to handle the loan.

Get to Know the Home-Buying Process

And last, but not least, get to know the entire home-buying process. While that won't get you a mortgage on its own, it will help prepare you for the steps involved. Research home buying tips to get even more prepared.

How to Buy a House with No Job: It's Simple

Getting a home when you aren't traditionally employed doesn't have to be difficult. There's a bit more work involved, but that's how to buy a house with no job--putting in the work.

Take the time to gather all income-related documentation and everything else you'll need, and you may just get that mortgage you're after.

If getting a mortgage can wait, consider starting your own business before you apply. Click here for helpful business-building articles.