Everything You’ve Always Wanted to Know About Real Estate…but were afraid to ask (Real Estate…’for the rest of us’.) »

Can I prequalify for a home loan w/ no job?

Question : Can I prequalify for a home loan w/ no job?
Here’s the deal. I’m currently a college student. I have no job but have about 15,000 in cash reserves. I really like this small house for 75,000. I have a credit score of about 700. Would I prequalify for a home loan? I don’t want to get my credit ran if there’s no possible way to do this… The monthly mortgage payment would be equivalent to what i’m paying for rent right now. This would also be my first home. Any experts out there on this?
I graduate at the end of this year so I’ll be getting a job within the next few mths.
prequalify for a home loan

Best answer:

Answer by James Knight
I doubt it as no job means you wont have any money coming in and how are you going to pay it when you cash runs out?

home Loan prequalify

This entry was posted by admin on September 3, 2010 at 5:16 pm, and is filed under Loans and Mortgages. Follow any responses to this post through RSS 2.0.You can leave a response or trackback from your own site.

Comments (6)
Related Posts

#1 written by Pengy 1 year ago

Get the job first then see if you qualify because without it you do not. Mortgages want a verifiable employment record usually of a couple of years, here you are looking to buy with no income, and no guarantee of one just because you are graduating. More importantly how much you will be making. Graduate, get a job, make a history, then buy a home.

Quote
#2 written by matzael 1 year ago

You’d have to show some source of income. Jobs are the standard, sometimes you can use benefit amounts to qualify on. But you can’t just use your reserves unless you can prove they’re consistently coming in.
You may have to wait until you graduate or possibly get someone to sign as a non-occupant coborrower (possibly a parent)

Quote
#3 written by Philly Broker 1 year ago

There’s good and bad news.

The bad news first –
You need to show income in order to qualify for a loan. Banks and mortgage companies DO NOT qualify borrowers based on future income.

The good news –
If you get a job in your field after college as a w-2, full-time employee, lenders waive the typical requirement that borrowers need to show 12 months of income. You typically only need to be there past the probation period (most places its 90 days).

Quote
#4 written by Huge Win 1 year ago

Home loans are now available to many people for whom they would have been out of the question just a few years ago. You’d be in much better shape to bargain for better interest rates if you had a more impressive credit history, but if the house you want is the deal you
#5 written by Linda B 1 year ago

Don’t be afraid of putting in an offer before prequalifying. Contingencies on the buy-sell agreement are normal, including financing that is acceptable to you. Get a buyer’s agent to help you with this. You’ll need to put earnest money down if the offer is accepted. $ 500 may be enough, but more might be expected or a better incentive for the seller to accept offer. Depending on the house, your market, and the length of time the house has been for sale, consider making a lower offer than the asking price.

Once they’ve accepted your offer, go after all sources of funding. In your favor is 20% cash for the down payment and good credit. Your resources for paying rent may be taken into account.

If you don’t qualify for funding, consider a co-signer for the loan. After you have an established job you can refinance in your name only. Another option might be a trust set up to make the payments for a year or two. Whether you have good resources or none, explore various possibilities. If the home isn’t in demand, ask if the owner would be willing to carry the contract. It could be from a year to several years (payments same as a loan; just needing to refinance after a while). If you default, the home would revert back to him (or her). If the owner finances, don’t expect any discounts on the price and the interest rate may be higher.

Many lenders may turn you down, but it only takes one good one to get things going. Watch the terms and rates. Don’t get desperate; you don’t want to get into a bad deal. If you have student loans coming due after you graduate, these will be taken into consideration also. You won’t need to put in applications with each lendor. Talk to each lendor about your situation and their terms to narrow down where you want to apply.

You’ll need a home inspection and appraisel. Your lendor will require these to be ordered directly by them. The fees can vary.

HUD loans might be a possibility. Expect more paperwork and a longer timeframe for financing. http://www.hud.gov/

If you’re unable to get financing, you’ll receive your earnest money back if you’ve met the requirements in the buy-sell agreement. You’ll at least have had a learning experience. You might be able to extend the buy/sell agreement if you need more time for financing or you could exit the agreement.

Extra expenses if you do buy will be the taxes and insurance, plus home repairs. Check all past utility records to prevent any huge surprises.

Good luck!

Quote
#6 written by jazi 1 year ago

You need to show a source of income to qualify for a home loan…..and you should show at least one full year in the same job………..how will you show you can pay your loan?

Quote
Comment Feed for this Post