‘How to buy a house with no job and good credit’ is a question I see often. It is asked by people who do not have a job, but they have no source of income or assets. Or by people who either have assets. Also by people who get money irregularly, large amounts, from selling things.
Before I go into all the ways you can buy a house with no job and good credit, full disclosure: To keep the lights on, Home Loan Mine uses affiliate links. If you buy or register for something using one of those links, I will make a small commission. With luck, it will be enough to pay the lights and feed my imaginary capuchin monkey pet.
Lenders lend to people who can prove they can repay the loan. A job is one way you can prove you can repay the loan. Showing assets and bank statements are two other ways. You could also purchase a property that cash-flows and qualify based on that alone.
Asset-Based Mortgage Loans
The advantage: you do not need to be employed.
The disadvantages: interest rates are higher and you tie up assets.
Click this link to find out how asset-based lending for residential real estate works.
Bank Statement Mortgage Loans
To get a home loan with bank statements only, you need to have 12 or 24 months of bank statements that have large enough deposits.
The advantage: you can qualify for a mortgage even if your previous year(s) your business was not doing that well.
The disadvantage: your interest rate is going to be higher than if you qualified based on employment.
If you have no job, no large assets, and you have not sold anything expensive, the only way to get a loan is to partner with someone who has a way to prove to lenders that they can repay the loan. They would also have to have good enough credit for whatever type of program you end up qualifying for.
I have seen parents buy a house with an adult child who could not qualify for any mortgage. The child was on title but not on the loan. One year later, the child could qualify, so they refinanced and removed the father from the title.
If you do not have parents or relatives willing to help you that way, you form a partnership with someone. Your issue here would be to bring value to the partnership.
If you can remodel homes, you’d be doing the work (so, you’re putting in sweat equity). If you cannot, you’d have to have something else of value to bring in.
Now you know how to buy a house with no job and good credit. To know if it’s worth it, you need to talk to a loan originator, so you can find out what the interest rates will be for the way(s) open to you. The costs too. That way, you can determine if it is worth your while.
DSCR Mortgage Loans
DSCR stands for debt-service-cover ratio. There are lenders that will give you a loan based on your credit score and the cash flow of the subject property.
For most, the ratio must be at least 1:1.25. For others, it can be less. At times, for some, it can be as low as 1:0.90.
Last option you have is to bring in a partner. You do not have to be on the loan; you have to bring something of value to your partner. That could be cash, a service, some other item of value you own.
There are several options to buy a home with no job and good credit. Except for the last one, they all carry a higher price then buying a home with a job (self-employed counts too). The last one can, if your partner’s credit score is good enough, be done with a regular conventional of FHA, VA or USDA loan.