To secure a mortgage without a job, applicants must leverage alternative income sources, demonstrate stable assets, and meet specific down payment requirements. Lenders typically require proof of consistent income through non-traditional means such as gig work, investments, rental income, or retirement accounts. A down payment of at least 3% to 20% is necessary, with lower percentages available for government-backed loans like FHA or VA mortgages. Creditworthiness, verified through credit scores and debt-to-income ratios, remains critical.

Lenders increasingly accept non-traditional income if properly documented. For example, Fannie Mae’s guidelines permit income from gig work, freelance contracts, or passive investments if supported by two years of tax returns, bank statements, or profit-and-loss statements. A 2023 Federal Housing Finance Agency report noted that 68% of mortgages with non-W2 income were approved when documentation met criteria. Down payment assistance programs, such as FHA loans with 3.5% down or VA loans requiring no down payment for veterans, mitigate financial barriers. However, credit scores must exceed 580 for FHA loans, and debt-to-income ratios should stay below 43% to qualify. Data from the Consumer Financial Protection Bureau shows that 55% of applicants with non-traditional income face delays due to incomplete documentation, underscoring the need for meticulous preparation. Combining alternative income proof, sufficient down payments, and strong credit profiles significantly improves mortgage approval odds without traditional employment.