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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