Buying A House Without Income
by Hopeful Home Buyer from USA
Ask Kate about buying a house without income: Okay Kate, I actually have several questions, but first I need to explain my situation. I come from a fairly well-to-do family. Ever since I started living on my own, my family has helped me out financially whether I was employed or not and for about the last two years, I was working.
My husband however couldn't find a job (the economy's rough all over) but we didn't starve because of my family. Now my husband and I would like to buy our first house. He's had a job for about 6 months but I've stopped working recently because of health problems.
Buying A House Without Income - Family Help
My family wants to help me out, of course, but can't get the mortgage themselves because there was a lien on one of their other properties, which was recently lifted.
That leaves my husband and I trying to get the mortgage on our own, but since he's had no income for two years and I have no income now, I know no one is going to give us a loan.
My family thinks there is still a possibility if I can find a lender who is willing to take check stubs and W-2s only, so no bank statements or tax returns, because my family can make check stubs and W-2s in my name so it looks like I had income the whole time when actually I did have money but it was the money in family checking account.
Yes, I know this is lying to the lender, but my family will only accept the answer that this won't work if I can tell them that an actual mortgage person said so. My family is happy to just get the mortgage themselves, but none of us know if the lifted lien will make that difficult or impossible.
The last option is to be put on the family payroll and try in a year. Then I will have check stubs, bank records, tax returns, etc. that will match what I tell the lender I make. The only problem with this is that my family wants me to get a house this year because of the tax credit.
Buying A House Without Income - I Feel Unique
I realize my situation is very unique and that some of it may not be exactly legal, however I'm not a bad person and I don't come from a bad family. They just want me to have a good life and are always well-meaning in their intentions. I've put these questions to others but they wouldn't answer me. So please, I really need some answers.
Buying A House Without Income - My Questions
1 -- Is there any chance a lender will give us a loan based on check stubs and W-2s only?
2 -- How long will the lien effect my family's chances of getting a mortgage? Signed, Hopeful Home Buyer
Kate Answers: Buying A House Without Income
Dear Hopeful Home Buyer,
First and foremost, above all else, never lie to your lender. It's just not worth it.
I have read your letter about buying a house without income several times and each time come back to the same solution - mortgage pre approval based on your husband's income. Here's why!
Buying A House Without Income - Think Ahead
If your husband has been currently employed for 6 months and has worked in a similar field previously (assuming he is not self-employed or commission-only), you might be able to use his income. Sure there can be a lot of twist and turns but my point is if you don't try out mortgage pre approval, you will never know whether or not you can buy a house.
Start here with Mortgage Pre Approval
to learn about buying a house the easy way. Another Reader like you, Sally, shares this about buying a house... Mortgage Pre Approval Not Prequalification
and it is certainly worth the read!
Hint: Before you apply for mortgage pre approval, construct a detailed letter explaining your husband's job history and reason for job gaps.
Buying A House Without Income - Co-Borrowers
Now you also asked if liens limit borrowing power. Liens are a credit issue. But how serious and far reaching is the one you refer to? There are so many variables, I can't say. But your family could also accompany you for mortgage pre approval to find out.
Another thought if your husband's income is not sufficient to fully support a mortgage approval, perhaps an additional co-borrower with strong income would be the winning combination.
I have provided links for buying a house below for your convenience. After reading through them, please let me know if you have more questions.
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