Core Insights - The article discusses the possibility of obtaining a home loan without traditional employment, emphasizing that while job security is important, lenders can consider alternative income sources and financial stability [1][24]. Group 1: Employment and Income Sources - Employment is not the sole factor for mortgage qualification; lenders focus on the ability to repay, which can include various income sources such as Social Security, military retirement benefits, and pensions [2][4]. - Alternative income sources that can be considered include Social Security, disability benefits, veteran retirement pay, and long-term rental income, provided they are well-documented and expected to continue for at least three years [7][19]. - Cash reserves, such as savings and investment accounts, can significantly enhance a borrower's profile, reducing lender risk in the absence of job-related income [9]. Group 2: Credit Profile and Co-Borrowers - A strong credit profile is crucial; a "very good" credit score ranges from 740 to 799, and lenders prefer a debt-to-income (DTI) ratio of 36% or less [10]. - Including a co-borrower with a stable income can strengthen the mortgage application and improve loan terms, as both parties share responsibility for repayment [11][20]. Group 3: Strategies for Homebuyers - Homebuyers can qualify based on assets by converting savings or investments into an income equivalent, which is particularly useful for retirees or those between jobs [17][18]. - Making a larger down payment can lower the amount financed, reducing lender risk and potentially leading to loan approval even in uncertain employment situations [21]. - Delaying closing strategically can be beneficial if a job offer is imminent or if a furlough is expected to end soon, allowing lenders to finalize approval based on new income documentation [22]. Group 4: Special Considerations - Furloughed federal employees remain officially employed, which may facilitate the verification of employment during the mortgage process [23]. - If a borrower loses their job during the mortgage process, lenders typically re-verify employment before closing, which may lead to delays or denial unless alternative income sources are established [16][27].