There are ways to get approved for a mortgage if you are in between jobs yet itching to buy a home. We’ll reveal what they are and discuss why employment history is important to lenders.

It’s not a mystery what lenders want to see before approving you for a mortgage. First, they want to make sure you can repay the home loan. And second, they want to make sure you are willing to repay it. Keeping this in mind, do you think a lender would approve a person for a home loan if they are not working? Probably not, but the truth is, some lenders will approve you for a mortgage without a job. Here’s how.

How To Get A Mortgage Without A Job

It is not impossible to buy a house if you are unemployed. However, you will have a bigger mountain to climb than someone working at the same job for several years with a steady income.

Before we jump into the different ways to get a mortgage without a job, let’s touch on unemployment income. In most cases, a lender will not approve you for a home loan with unemployment income. One exception could be if you are a seasonal worker who can show a history of receiving unemployment during certain times of the year in the past. But generally, if your unemployment benefits just started rolling in, you will have to wait until you are working again or have a job offer letter to get a mortgage.

As for ways to get a mortgage without a job, have a look at the list below. These options exist because lenders look at more than just your employment history when making a lending decision, as your debt-to-income ratio, income, and credit matter too.

1. Apply for the mortgage with your partner or spouse – Their income and employment history may suffice and put you over the hump.
2. Use your assets to get approved – If you own assets, a lender may approve you for an asset depletion mortgage, knowing that you could sell what you have over time to pay the home loan.
3. Show alternative income – Employment income is just one way to repay a home loan. Alternative income sources that could get you approved for a mortgage include Social Security benefits, disability benefits, alimony payments, annuities, investments, pension, etc.
4. Apply for a bank statement loan – You may lack sufficient proof of income or employment history if you’re not working right now because you’re self-employed, in between gigs, etc. A bank statement loan could make getting the funds you need to buy a home easier.
5. Apply with online lenders – Banks and credit unions may be stricter regarding employment history. An online lender could approve you if you’re not working right now.
6. Get a job offer letter – If you are not working because you’re seeking employment, a job offer letter from your next employer may be enough for a lender to approve you, as it will show your start date and salary.

Regardless of why you’re not working, you will probably have to work harder to get a mortgage than the “ideal” candidate. Contact as many lenders as possible and discuss your situation while listing your strengths. Only then can they give you insight into your chances of getting a home loan. If you simply apply online or try with banks and credit unions, constant rejections could prevent you from reaching the one lender willing to work with you.