Can You Get a Mortgage Without a Traditional Job?

Steady employment. Reliable paycheck. W-2. The path to homeownership may seem straightforward for some, but what if you don't fit the traditional mold? Can you get a mortgage without a permanent job? Many have! The path to your dream home may just look a little different. Here's everything you need to know about getting a mortgage without a traditional 9-5 job.

Understanding Non-Traditional Employment

Non-traditional employment covers a wide range of work arrangements, including:

• Freelance writers
• Rideshare drivers
• Contract designers
• Independent contractors
• Self-employed entrepreneurs

While these roles offer flexibility and freedom, they can also make mortgage lenders cautious, as income is often variable and more difficult to track compared to a regular salaried position.

How Lenders Verify Income

Can you qualify for a mortgage without a job that's considered "traditional?" It's possible, so long as the lender you choose sees that you can reliably repay a mortgage. How can you demonstrate that ability if you're a self-employed or 1099 borrower? Here are a few different avenues to explore:

Tax Returns

Most lenders are willing to look at your last two years of tax returns. If you have consistent earnings, this could be a good way to show your ability to repay a home loan.

Profit and Loss (P&L) Statements

If you're an entrepreneur with your own company, a P&L statement helps a mortgage lender understand your business performance and income trends.

Bank Statements

Some lenders will ask to see several months of personal (and business, if applicable) bank statements to assess your cash flow.

CPA Letters

A certified public accountant can summarize and verify your income, providing lenders with additional confidence in your ability to repay a home loan.

Alternative Documentation Options

Traditional documentation a challenge? Even without a W-2, you may still have options! Some lenders accept alternative documentation, such as bank deposits, invoices, or even letters from clients, as an additional way to verify income.

For More Loan Flexibility, Check Out These Options

Here at JustChoice Lending, we offer a diverse portfolio of mortgage products, helping you find options regardless of your employment situation. Certain loan programs are more flexible for non-traditional workers, such as:

• FHA loans: An FHA loan often comes with lower credit score requirements and alternative income verification options compared to more traditional options.
• VA loans: Available to eligible veterans, service members, and certain military families. VA loans don't require a down payment or private mortgage insurance. They're also more flexible when it comes to verifying income, making them a great option for borrowers without a standard W-2.
• USDA 502 direct loans: Designed to help those with good credit but limited income, USDA direct loans feature affordable interest rates and often require no down payment. For those without W-2s, USDA loans can be especially helpful.

Homeownership, Your Way

Can you get a mortgage loan without a job that’s considered traditional? It’s possible with help from JustChoice Lending. No matter how you earn your income, we work to put homeownership within reach. Contact us to learn about the programs and home loan options we have for earners of all types!