Can I get a mortgage while I’m not working

Question

Recently unemployed, long term want to create a rental property business. Can I qualify for a mortgage while currently not working? If I owe a property?

Chelle Cumberbatch · Answer

hi thank you for this ill be looking into it

Lauren DeFreitas · Answer

Also called a non-QM loan (from rate.com)

Qualified Mortgage

Non-qualified Mortgage

Lenders must follow ATR rules

Lenders do not need to follow ATR rules

Lenders require thorough income documentation

Lenders may not verify income

Borrowers must meet lenders’ credit score thresholds to qualify for a loan

Lenders may extend mortgages to individuals with low or no credit

QM loans may be backed by government loan programs like VA and FHA loans

Not eligible for VA, FHA and other government loan programs

Interest rates conform to current industry standards

Interest rates are often much higher compared with conventional mortgages

Lyndsay Zwirlein · Answer

Yep DSCR like everyone said. But make sure you have sufficient cash saved up and a strong FICO.

William Graham · Answer

As a private money lender, I do short-term loans for six months to 24 months, with the property being the collateral. Income isn't considered, and credit score isn't either. Loans are for the fix/flip, but for a BRRRR, you would need to refinance once the rehab is complete and a new appraisal is completed for a more conventional loan. The better the deal, the better the loan.

Matthew Wolk · Answer

Yes, DSCR loan, you do not need income.

Stephanie P. · Answer

DSCR financing is made for your situation. We recently got an unemployed man financed on a 2.1M purchase of a 29 unit building at 75% loan to value.

The cash flow of the building and the guarantor/borrower's credit is the key.

PM sent

Stephanie

Eliott Elias · Answer

Yes, using DSCR lending.

Jevon Shaw · Answer

It will be hard, but probably not impossible. You won't qualify for the government-backed loans, which tend to have the most favorable terms. You might qualify for some sort of DSCR loan. If you have money saved up, you have options. If you don't, I would try to find another job.

Adam Bartling · Answer

@Steve Strom Anything in the 5+ unit realm yes, with adequate cash reserves and 680+ FICO. Or Commercial properties.

Next Questions..

Qualified Mortgage		Non-qualified Mortgage
Lenders must follow ATR rules		Lenders do not need to follow ATR rules
Lenders require thorough income documentation		Lenders may not verify income
Borrowers must meet lenders’ credit score thresholds to qualify for a loan		Lenders may extend mortgages to individuals with low or no credit
QM loans may be backed by government loan programs like VA and FHA loans		Not eligible for VA, FHA and other government loan programs
Interest rates conform to current industry standards		Interest rates are often much higher compared with conventional mortgages

Can I get a mortgage while I’m not working

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