How to Finance a Home Without Traditional Income

Real Estate Education Fleur Howgill September 12, 2023

Borrowers without a traditional or salaried income, such as self-employed individuals, independent contractors, retirees, or others with irregular income sources, have always had to jump through a few hoops to finance or refinance their homes.

While buying a home without traditional income can be challenging, it is not impossible. Here are some strategies homebuyers should consider to finance a home without traditional income:

  • Save up a sizeable down payment – The more significant the down payment, the less a homebuyer will need to borrow. Having a larger down payment can make lenders more willing to work with a borrower seeking to buy a home without traditional income.
  • Build good credit – A good credit score can help a borrower qualify for various types of loans. All borrowers, including those without traditional income, should maintain a strong credit score by paying their bills on time and managing their debts. Borrowers can also reduce their debt to improve their debt-to-income ratio and their chances of getting approved for a home loan.
  • Document income and assets – Keep detailed records of income sources, including freelance or contractor work, rental income, retirement income, freelance settlement agreements, court-ordered payments, and assets such as properties, stocks, retirement accounts, and investments. These records could come in the form of bank statements and tax returns.
  • Check out government-backed loans -- Government-backed loan programs like FHA, VA, or USDA loans, have more flexible income requirements and lower down payment options and are especially useful for first-time homebuyers.
  • Buy with a co-borrower -- Applying for the mortgage with a co-borrower who has a stable, traditional income can improve a homebuyer’s chances of approval and potentially secure better terms than going it alone.
  • Speak with a trusted mortgage broker -- Fleur and Veronique can assist you with this, matching you with the best lenders for your needs. 

Buying a home is a dream for many people, but it can be especially challenging for those who don’t have a traditional, salaried income. That’s why it’s important to understand the requirements and work with a mortgage professional to ensure the loan application is packaged correctly with all the needed documentation.

If you are looking to finance a home without traditional income, but you don’t know where to start, let us help! Our team can connect you with a mortgage specialist who can provide guidance tailored to your unique financial circumstances. Let’s get started!

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Fleur and Veronique's passion for travel has significantly enriched their understanding of diverse cultures and unique requirements. Their personal experience as expatriates further enhances their ability to cater to the needs of an international clientele seeking insight into life in Washington DC. Fleur's remarkable history of achievements serves as a testament to her expertise. Don't hesitate to contact Fleur's team to discover more about how they can assist you!