Getting a mortgage without a job -- you can't

July 8, 12:03 PMReal Estate News ExaminerBroderick Perkins

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Q: Can you get approved for a mortgage after you've been laid off? I was hoping you would be able to shed some light on the subject. A little advice would go a long way right now.

A: No. The days of NINJA (No income, no job or assets.) loans have been karate chopped.

A: "You cannot. You have to show income on all loans regardless of the size or down payment. They used to take unemployment income, but no more. Furthermore they will perform a verbal employment check at doc or funding time," said a loan source of Julia Truesdale Keady, president Silicon Valley Association of Realtors.

A: "No, you not only need a stable source of income these days, but also need to prove you have a certain amount of reserves based on the amount of the loan. Independent contractors are pretty much out of luck from what I know because we all deduct the maximum amount of deductions we can thus our income comes in low. Of course credit scores are also important, but the reserves are also key," Kim DiBenedetto, president Monterey County, CA Association of Realtors.

A: "Not anymore. If the property is owner-occupied, you will have to verify your
income/ability to repay, even with private money loans (hard money)," said Quincy A. Virgilio, Jr, president of the Santa Clara County Association of Realtors.

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Broderick Perkins, operates the Silicon Valley-based DeadlineNews Group digital news service. Get the feed from the Deadline Newsroom

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