To obtain a mortgage without a job, borrowers must demonstrate stable alternative income sources or assets. Key strategies include leveraging rental income, investment earnings, freelance/gig work, or government benefits like Social Security. A significant down payment (typically 20-30%) can offset the lack of traditional employment by reducing loan-to-value ratio and risk for lenders. Co-signers with steady income may also help qualify. Lenders may accept tax returns or bank statements proving consistent cash flow from these sources.

Lenders prioritize predictable cash flow over employment status, as long as the borrower meets debt-to-income (DTI) and credit score requirements. For example, the Consumer Financial Protection Bureau (CFPB) reports that 20% of mortgages in 2022 involved non-traditional income verification, often through documentation like 24 months of consistent gig work earnings or rental property cash flow statements. Fannie Mae’s 2023 guidelines allow non-W2 income if supported by two years of tax returns, profit/loss statements, or bank records. A 20% down payment is critical, as it reduces loan default risk by 50% according to Federal Deposit Insurance Corporation (FDIC) data. Additionally, a credit score above 620 is mandatory for conventional loans, per Fannie Mae standards. These factors collectively enable mortgage approval despite lack of traditional employment, provided alternative income is verifiable and sustainable.