How Can I Refinance My Home If I Am Unemployed?
- 1). Acquire a co-signer for the loan. This person can be a friend or family member and must have good credit and a reliable source of income. A co-signer will be legally and financially responsible for paying back the mortgage if it is defaulted on.
- 2). Obtain a no-documentation loan. This type of loan is generally sought by persons who are self-employed and do not have a verifiable, steady source of income. The loan is based upon a good credit history and financial assets rather than income.
- 3). Find a new job in another field if you are unable to find work in your usual career. An alternate full-time job that pays less can still be used as an income to refinance the loan.
- 4). Acquire a home loan modification with the current bank or credit union that possesses the loan. The bank may lower the interest rate or extend the life of the loan, both of which will lower monthly payments. To obtain a home loan modification, the borrower must prove to the bank that he is economically deprived but is also a good credit risk.
- 5). Apply for federal and state government mortgage recovery plans. The federal government and the FHA have programs to aid homeowners who can no longer pay for their mortgage. Options include loan refinance, modification and principal reduction, depending on your circumstances. Eligibility for each of these programs varies according to different sets of factors, such as the owner of the loan and the amount the owner is behind on his mortgage payments. Check federal and state government websites to find out information on current programs.
