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Unemployment Benefits and Refinancing

My fiance just lost his job and we were in the process of refinancing.   With my income and his unemployment benefits our front end debt would be at 22% and back end dept at 29%. He has worked for the same company for the past 5 years in high end home construction and there is a high likely hood that he would be rehired in the next couple of months once the project they have in the pipeline come through - do you think we'll be approved?
  • August 20 2010 - Minnetonka
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Answers (2)

Sorry to hear that!  Timing is everything, right?


You'll want to talk to the lender but my gut says no.  Banks want people with jobs, not people who MAY have a job in a few months.  Unemployment isn't sustained income.

What do your ratios look like without any of his income?

The one place I could see this being different is if you are doing one of the government refinancing programs - some do not income qualify.

At the end of the day talk to your lender - keep in mind too that they will ask for pay stubs and may ask again prior to closing so lying about your finances will not get you anywhere.
  • August 20 2010
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Unemployment compensation can be used as qualifying income, but only if you are in a seasonal business, have a history of seasonal layoffs, and are already back at work.  Unfortunately, you will need to wait until your husbands company has rehired him before you would be eiligible.

Peter Boyle
612 701 6816

  • August 21 2010
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