You can get a mortgage without a full time job.  In fact, even if unemployed, it would still be possible to qualify in some rather extreme cases.  If you would like to buy a new home, but you aren’t sure that your lack of employment will allow you to buy the house you want, you have some options to improve your chances of getting approved.  Some can successfully negotiate a refinance loan after they lose their positions, and you can use the same methods to get approved for a mortgage without a full time job.  Here’s how to make it happen.

Improve Credit if Needed

If you are over 740 or so, you can probably skip this part, but it still wouldn’t hurt.  You can get a mortgage without a full time job if you have a super good credit history, especially if you have been employed less than 40 hours per week for some time.  If you show a history of making it work while working less than 40, you have even less to worry about.   If you don’t have that luxury, you need to look to improve your score by challenging errors and making changes to your spending habits to get a mortgage without a full time job.

How Much Do You Earn?

Banks look at how much you make and compare it to how much your mortgage payments would be.  The wider the gap you have, the better off you will be.  You can still get a mortgage without a full time job, but you will need to display to the bank that your monthly obligations will not sink you.  If you earn more, you will have a better chance of getting approved for the house loan.

Loan to Value Ratio

The reason that some people can successfully negotiate a refinance loan when unemployed is by having a favorable loan to value ratio.  This means the home is worth much more than the refinance amount.  The same rules can apply so you can get a mortgage without a full time job.  This means borrowing less money and putting more down on the home loan. 

Cosigners for Loans

In some cases, even if you have a good score and have a proven track record, the bank may not approve you for a mortgage without a full time job.  In these cases, it may be a good idea to look at getting a cosigner to help you out.  If they have a good rating you should get approved.