Home Buying in Chicago>Question Details

Devin R. But…, Home Buyer in Chicago, IL

Is it possible to use unemployment as a income for a home?

Asked by Devin R. Butler, Chicago, IL Wed Aug 14, 2013

Help the community by answering this question:


Actually Yes - Unemployment is common with seasonal workers. You need to have a 2 year history of reciept and will need to be currently working in order to use the income to qualify.
If someone is just out of work and collecting unemployment - then no this is not a usable cource of income.
Sam Sharp
Senior VP of Mortgage Lending
Guaranteed Rate
773 290 0455
3 votes Thank Flag Link Wed Aug 14, 2013
yes, if it is seasonal unemployment it will work if you have been getting it for more than 2 years.

Riccardo Wardlow
Quality Mortgage Lending


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1 vote Thank Flag Link Fri Aug 16, 2013
Really? How long you been unemployed?
1 vote Thank Flag Link Thu Aug 15, 2013
You mean the benefit from unemployment insurance? Afraid not. Income from employment or unearned income from investments is needed to make the payments on home loans. But in Chicago, today, who knows. Here in Jersey, "fagedabod" it. You need a loan? Let me introduce you to someone. They operate in Chicago. All over. Ya' know what I mean?
1 vote Thank Flag Link Wed Aug 14, 2013
Mortgage lenders and FHA underwriters do not count income to qualify unless you can show that it is expected to continue for at least three years. Since unemployment benefits generally run out after 26 weeks, they can't usually be used to qualify. Even if you don't have bad credit, mortgage lenders aren't comfortable lending to people without jobs.

There is one situation in which unemployment compensation can be used to qualify for mortgage financing. Seasonal employees with a history of working and then collecting unemployment every year are allowed by FHA to count the unemployment compensation as income.

I hope this helps and good luck!

Brian Nguyen
Sr. Mortgage Banker
NMLS # 659743
Phone: 949.667.2887
0 votes Thank Flag Link Mon Feb 24, 2014
As long as it lasts 2 years. For mortgage help, call or email for a free pre-approval in less than 10 minutes. We lend our own money and are licensed in 49 states.

We can do: FHA, Conventional, USDA, VA, HARP, Interest Only, Home Equity, Fixed, and Variable. Find out which product is right for you by calling Brad at (855) 415-5626.

Brad Neumann
Sr. Loan Officer
Crosscountry Mortgage Inc.
Toll Free: (855) 415-5626 ext. 5734
Email: bneumann@myccmortgage.com
NMLS# 948036
0 votes Thank Flag Link Fri Nov 15, 2013
We suggest that you meet with a loan officer at two local banks. There are industries where employees are regularly laid off for known periods of time.
0 votes Thank Flag Link Tue Aug 20, 2013
thank you, i have done it for electricians that work up on the high towers, they cant do it in the winter, also i have done it for union people who are off for the same time every year....
0 votes Thank Flag Link Tue Aug 20, 2013
What's a good example of "seasonal unemployment" in Chicago? When the wind picks up? Here in Jersey it is when the Jersey blueberry season is over. Also, tomato picking season. Riccardo, I like your promo on what you can do. Very nice.
0 votes Thank Flag Link Sun Aug 18, 2013
Construction is Chicago is very seasonal.
Flag Sun Aug 18, 2013
Current Unemployment Income = NO
Currently employed but within the last 2 years have collected = YES
Web Reference: http://www.BJDLOANS.com
0 votes Thank Flag Link Thu Aug 15, 2013
Sam is one of my favorite Guaranteed Rate lenders. Take his advice.
0 votes Thank Flag Link Thu Aug 15, 2013
What Sam Sharp said.

Matthew Roder
Guaranteed Rate
VP of Mortgage Lending
0 votes Thank Flag Link Thu Aug 15, 2013
Are you talking to buy or rent?
0 votes Thank Flag Link Wed Aug 14, 2013
100% you cannot use it towards it.
0 votes Thank Flag Link Wed Aug 14, 2013
Income needs to continue for 3 years. That being said unemployment is not a valid form of income when obtaining a mortgage.

Please feel free to give me a call with any questions.

Josh Marks
0 votes Thank Flag Link Wed Aug 14, 2013
If you don't have a job, then it's unlikely that you'll qualify for a loan. Get a good job and save for a down payment. You'll need decent credit as well so be careful about running up debt while you're not working.
0 votes Thank Flag Link Wed Aug 14, 2013
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