Posted by admin on April 9, 2018
Is It Possible to Get a Loan Without Having a Full-Time Job?
Many Americans assume a full-time job is the first step to buying a home, but is that really the case? Modern families have one or more sources of freelance income, which can make applying for a home loan feel daunting. However, if you don’t have a full-time job, you can still achieve the dream of home ownership. Here are three things you can do to make your income more palatable to lenders.
Validate Two Years’ Worth of Income
There are two goals to this practice. The first is to show that even without a full-time job, your freelance or part-time work pays the bills and can support a home loan. The second is to show that your income is on an upward trend, which is why you include two years instead of just one. The best way to demonstrate this income is with tax forms from that year.
Demonstrate Good Savings Practices
Bring information about your current savings account to show that you have one and that you regularly make deposits into it. A savings account tells lenders that you aren’t as risky as your part-time work status may suggest. The rule of thumb for a good amount of savings is to have six months’ worth of expenses saved up.
Get a Co-Signer
Even with this information, a home loan may still be difficult to get. That’s when it’s good to ask friends and family members if they’re willing to co-sign the loan. Another way to show you are a less risky investment is by getting written contracts from clients showing how much longer you will work for them. This is especially useful if you have longstanding clients who want your services for many years to come.
Applying for a home loan when you don’t have a full-time job can be intimidating, but it doesn’t have to be impossible. With some planning and access to a great lending team, you may still be able to purchase a home with your freelance and part-time income.