1. Please fill your name in this blank and email me back this entire paragraph along with your written responses to the rest of the questions below: I, Oliver Gaywood hereby give my permission to Rocket, LLC and its affiliates, agents, and partners ("Authorized Persons") to use my name, likeness, and any quotes, statements, or media I provide (collectively, "Materials") for marketing, advertising, or promotional purposes. This includes use on websites, social media, digital or print ads, and other marketing platforms. I understand that my quote(s) may be edited for clarity or length but will not be misrepresented. I confirm that my statements reflect my honest opinions and experiences. By sending this electronic email, I grant Rocket, LLC the right to use these Materials and my Likeness without further approval or compensation. I also release Rocket, LLC from any liability related to the use of this content as outlined above. 2. Is it actually possible... Yes, it is. It's obviously a lot easier to qualify for a mortgage if you (and ideally a partner) work but if you have another form of income there are some lenders who will accept that. Things like ongoing compensation payouts for an injury or guaranteed income from a lottery win can also qualify you. 3. Why do lenders... When lenders give you a loan, there's an expectation that you'll pay it back. If you have stable income, you're more likely to be in a position to do this. That's why there are so many checks - like how long you've had your job, what your regular expenses are - when you apply. 4. What will lenders... Every lender is different. So while some of the big banks might not accept anything outside the ordinary, there's normally someone who will look at your situation. That's why going with a broker is so important, they know the ins and outs of the industry and can link you up with the best lenders for your situation. Self-employment income is one of the most common. Requirements can change, but generally you'd need at least two years of accounts to show your income. Sometimes you can get away with less if you have a contract that shows future income, but this is more common with smaller personal loans. Alternative income can refer to a lot of things, but even things like overtime and commissions can work against you. Lenders prefer to see guaranteed income, so a higher base with smaller commissions is more reliable in their eyes. [Hit character limit]
While it may not be commonplace, it is still possible to qualify for a mortgage without having a traditional job. However, you will need to provide proof of stable alternative income as well as sufficient financial assets that are able to support your mortgage payments. The reason most lenders want to see proof of employment is that this gives them a guaranteed means of receiving repayment; therefore, if you do not have an employer, lenders will look at other income sources (i.e., rent, dividends/royalties, business profits) and assess them using tax returns, bank statements, and/or audited financial statements. Additionally, the lender will require that you have sufficient assets or reserves in order to make six to twelve (6-12) months of mortgage payments in order to mitigate their risk. It is also recommended that you have a co-signer who has a good credit score, as this will increase your chances of meeting all qualifying requirements for approval. To ensure maximum potential for obtaining loan approval, you should maintain an excellent credit rating, manage your debt to income ratio effectively, and include letters of explanation for any unusual or non standard income source(s) or financial circumstances. Some examples of flexible loan types are government-backed loans (FHA, VA), Asset Depletion loans (Loans where a borrower can offer cash accounts as proof of ability to repay loan), and No Income Verification Loans (Loans where the Lender does not require an applicant to provide their income information). As mentioned above, potential borrowers can improve their approval chances by maintaining an excellent credit rating, documenting every source of income, building an adequate reserve, and selecting a loan type that pertains to their non-traditional employment.