Yes, you can get a mortgage loan while you are unemployed! There are specific home loan programs that make it possible to refinance your mortgage, even when you don’t have a job. This is important because when you have been laid off it is harder to pay your existing bills and refinancing can make that easier. By lowering the interest rate on your mortgage loan, you will have more money to spend on other bills and household expenses.
Tip: If you have been laid off and want to refinance do so immediately! Once you are late on your mortgage it is hard to refinance.
There are two main mortgage programs that can help you if you have been laid off or are currently unemployed: FHA Streamline Refinance and the Home Affordable Unemployment Program.
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FHA Streamline Refinance
The FHA Streamline Refinance program is the best deal out there. You can lower your interest rate and start saving money quickly. They do not verify your job history or income so unemployed borrowers can still get their mortgage refinanced!
In order to qualify, you must have an existing FHA home loan and refinancing needs to save you money or take your loan from an adjustable rate mortgage (ARM) to a fixed rate home loan. As an added benefit, this loan program does not require an appraisal which makes the process go faster.
The FHA Streamline Refinance program is famous for no credit, no appraisal, no job, no income home loans. This mortgage program is in place to reduce mortgage interest rates to make monthly payments more affordable for home owners. As long as you are paying your monthly mortgage payments on time you can save money quickly with this refinance program.
Home Affordable Unemployment Program
This is part of the HARP loan family and is designed to help unemployed borrowers stay in their homes. Here are the other qualifying factors:
• You can owe up to $729,750 on your home loan.
• Make your mortgage payments on time.
• Have a Fannie Mae or Freddie Mac loan.
• Your loan needs to have been issued before January 1st 2009
• You must be eligible for unemployment benefits.
• This must be your primary residence.
To find out if you qualify contact your mortgage banker. If the Home Affordable Unemployment Program is not right for you, they will point you in the right direction.
If you are struggling financially due to you or your spouse being unemployed, there is an easy way to improve your financial situation. By lowering the interest rate on your mortgage,you can save hundreds of dollars per month. This frees up the cash you need to keep living comfortably, even though your income has gone down. To discuss your loan options make sure you call an FHA approved lender so you can have access to a wide variety of loan programs. If you have a VA loan, a VA approved lender can help you reduce your interest rate with an Interest Rate Reduction Loan. The important thing is to refinance right away before you struggle to make the loan payment on time.
