The transition to post-pandemic normalcy has been difficult – especially for lenders and borrowers. During the pandemic, unemployment skyrocketed to 14.4% in April 2020 and interrupted a stable job history for more than 14 million people. On the other hand, rates of personal savings have also soared.
Whether you waited out the crisis with unemployment benefits or you invested your stimulus checks and received a big payout, many borrowers are struggling to get approved. These unexpected finance shifts don’t look good to qualified mortgage lenders who rely on long, stable work histories and tax returns. Most traditional lenders require six months of steady income and a two-year job history! Covid likely complicated that.
Follow these tips to secure financing after the pandemic, even if you don’t look like the ideal loan candidate on paper:
1. Prove that Work is Coming
Qualified lenders can’t count unemployment income if you’re currently unemployed or working in a different field. However, an employment offer letter can fill in the gaps. The letter must list your pay rate, show that there are no contingencies for hiring (or rehiring), and prove that you will start work within 90 days of closing.
2. Bring in the Reserves
Non-QM lenders want to know about your recent investments and new assets, even if they’re not listed on a tax return. Do your bank statements demonstrate your ability to pay at least six months of mortgage payments, real estate taxes, and property insurance? Do you have a healthy credit score and low debt-to-income ratio? Even better.
3. Ask About a Non-QM Loan
Non-qualifying home loans, including stated income residential loans, provide more flexibility. Private lenders are also able to verify investment income, bank statements, and alterative income sources, including Airbnb rentals.
Helpwithmyloan can connect you with top non-QM lenders that consider your unique financial situation and look beyond pandemic disruptions. With a non-QM mortgage, no job history is required, and a temporary period of unemployment doesn’t have to hold you back.
Since 2017, we have helped our customers secure more than $100M in financing with access to a network of the best non-QM lenders and traditional banks.