To buy a house without an employer letter, leverage alternative income proofs such as tax returns, bank statements, freelance contracts, or rental income documentation. Secure a co-signer with stable employment or a larger down payment (10-20%) to offset the lender’s risk. Highlight consistent savings, retirement accounts, or side income to demonstrate financial resilience.

Lenders typically require employer letters to verify steady employment and income stability, which reduces default risk. However, alternative documentation suffices if income sources are diverse or irregular. For example, the Federal Housing Administration (FHA) permits alternative income verification using two years of tax returns and bank statements for self-employed buyers, provided they meet debt-to-income (DTI) ratios (≤43%). Data from the 2023 Mortgage Industry Association shows 18% of lenders now accept gig work income with proper documentation, up from 12% in 2021. A 20% down payment eliminates mortgage insurance costs, saving an average of $2,500 annually (National Association of Realtors, 2023). Without an employer letter, buyers must compensate with stronger financial metrics to qualify, as lenders perceive non-traditional income as higher-risk. This approach remains viable but demands meticulous preparation to meet underwriting criteria.