How to Pay for Your Mortgage With Non-Traditional Incomes
Mortgage
Mortgages are essential to homeownership, but what if you have a non-traditional income?
There is a common belief that only individuals with a stable job history and regular income stream qualify for mortgage loans. However, that’s not entirely true.
Several financial institutions have established unique lending plans and financial aid programs to help applicants with irregular income streams become homeowners.
If you’re facing this problem, this post is for you. In this blog post, we’ll explore some of the services that can help you pay for your mortgage with a non-traditional income stream.
Non-Traditional Mortgages
Non-traditional mortgages are a common lending option for individuals with an unstable income stream.
In such cases, applicants may also be eligible for low or zero-prepayment penalties and longer repayment terms.
Depending on the program, they may also have the option to tailor their mortgage payments based on their income.
To qualify for a non-traditional mortgage, your financial institution may require you to present a year’s worth of bank statements to demonstrate your ability to pay the mortgage payments.
Co-Signers
A co-signer is an individual who signs up alongside the mortgage applicant to assume responsibility for the loan.
The co-signer must have a good credit score, stable employment, and sufficient income to qualify for the loan.
This option allows a borrower with a non-traditional income stream to obtain a loan with the support of someone reliable.
Financial Aid Programs
Several government financial aid programs can help create homeownership opportunities for individuals with non-traditional income.
These programs often have special assistance programs in place that are tailored to support individuals who work in freelance, self-employed, or contract jobs.
These programs may offer grant money to cover home purchase costs or reduce down payment requirements.
You can check this out with your mortgage lending institution, view their assistance resources page, sit with a financial planner, or contact the relevant government agency to see programs that may be available for you.
Money Lending
Money lending platforms and services, such as NewFi Lending, are resources that help borrowers connect with private lenders who offer loans to people with a non-traditional income source.
These platforms provide access to lenders who may be more open to applicants with a unique financial situation, such as those with an irregular income.
Borrowers can apply for the funds and get approved without providing traditional documents or going through the long process of conventional lending.
Rental Income
If you’re planning to invest in a rental property, a portion of the rental income can be used to offset mortgage payments.
This option is a great solution for individuals with non-traditional income streams looking to invest in real estate.
The rental income is considered income, and as a result, it boosts your overall income so banks can use it to calculate your mortgage, helping you qualify for the mortgage amount you need to purchase your desired home.
Credit Unions
Credit Unions provide a lending program for individuals with non-traditional income streams, allowing borrowers to qualify for lower interest rates, longer repayment terms, and credit counseling services.
Credit unions are typically non-profit organizations and offer greater flexibility than for-profit financial institutions.
Final Thoughts
Obtaining a mortgage with a non-traditional income stream may seem challenging, but as discussed above, you can take advantage of various mortgage assistance programs and options.
Do your research and explore the different alternatives offered by your financial institution and the government to determine which option suits your needs.
Mortgage lenders can also guide you through the lending process, making it a more straightforward process.
With patience, determination, and guidance, you can own the home of your dreams.
Category: Mortgage
