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FHA or Other Mortage While Collecting UI Benefits?

I live in a seasonal economy area, and I know that UI (unemployment) benefits income can be used by lenders if there is a history and expectation of it continuing year after year, and my situation will certainly qualify. (Yes, I do return to the same job each year.. I am 100% shareholder) What I don't know is if lenders will approve a mortgage during a period while I am off payroll and collecting UI? It would be so much easier for me to look for a home while I actually have the time; during work season I just plain can't do it, except for a few weeks during shoulder seasons. For FHA and conventional, please.
  • March 05 2014 - US
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Answers (3)

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Sorry, yes, I should have simply typed "self employed."

Joe; I expect 2014 to be better, and I would like to have a 3rd decent enough year behind me just in case. I also better understand now which losses/expenses can be added back as income. So.. I will be waiting until 2015 because every penny will matter for me. I would like to get the ball rolling in January rather than wait until after the summer when I will be back on payroll. In January I will be collecting UI benefits as I do every year (our state allows working, payrolled shareholders to collect UI when businesses are closed. Unfortunately this may soon change in reform, but I don't want to think about that now!!). I am aware that lenders will look at the whole year, add certain losses back, etc., and that UI income in situations like mine can be considered. I just want to know if I will be less successful if I apply for a mortgage while collecting UI? Or should I wait until summer when I am receiving payroll?  I've accepted Joe's answer as a 'doesn't matter either way.' If I am incorrect, please tell me. Thank you!!!
 
  • March 06 2014
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It sounds that you are self-employed, is that correct? Unfortunately, your question isn't very clear and I would need more details about your situation. It would be easier to speak to a lender directly. It may be possible to obtain a loan in your situation, but lenders also want to see a consistent employment, so it depends.  So the best thing for you to do is to speak with a knowledgeable lender to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out. Good luck!
  • March 06 2014
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When you mention that you are a 100% shareholder it sounds like you own your own company and just have it set up where you collect a paycheck and are W2'd.  In this instance it actually pays to be self employed because we as lenders are going to look at your income over the whole year instead of what you are making right at this moment.  The one thing I would however suggest is to get your taxes filed right away if 2013 was a good year.
  • March 06 2014
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