cancel
Showing results for 
Search instead for 
Did you mean: 

Unemployment and applying for a mortgage

tag
sharpie
Regular Contributor

Unemployment and applying for a mortgage

I have had the same job for 12 years, started hourly and am now salary.  It is a part time job, seasonal.

 

From the first week in November to the last week in February, I collect unemployment.  This has been the norm for four years.

 

I have virtually no chance of losing my job, and my employer would verify that.

 

I also have a small pension.

 

I want to buy a house, but the best time to do it will be this November.  However, I will be on unemployment then, and my income decreased.

 

How would this be viewed by a mortgage lender?  I will have a definite back to work date, and it is the same every year.

 

On doing calculations, I should qualify for what I need with a yearly income, but monthly in the winter does not look so great.  I just basically don't do much in the winter anyway, sometimes only buying one tank of gas for the car in four months.

 

Any ideas would be appreciated.

 

 

Message 1 of 2
1 REPLY 1
ShanetheMortgageMan
Super Contributor

Re: Unemployment and applying for a mortgage

I've helped someone purchase while employed in the construction industry, which is seasonal, and we used an average of the employment + unemployment to prove there was continuous income... but not while on unemployment.  However I am sure it'd be similar to qualifying, as long as it's documented that the unemployment income will continue until the employment income begins, and you are qualifying using no more than your current (unemployment) income, then I'd certainly think it's doable as long as you don't otherwise have any big risks (high debt ratio, not-so-good credit, lack of reserves, etc.).  I'd check around with a few places to see if they'll accept unemployment income as qualifying income if you are between seasons on your regular long term job, if so ask them to check out the rest of your situation and let you know what they think.  Bring them a copy of your myFICO.com reports to start with.  If things look like a good chance, go for the credit check and ask for an underwriter to review your loan to give you the thumbs up before you go out making offers.

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 2 of 2
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.