The main ways for unemployed people and citizens without official employment to get a mortgage to purchase housing

Mortgage for non-working people – myth or reality?

People who do not have a work record often ask whether it is possible to get a mortgage without official employment?

According to bank rules, such borrowers are classified as unreliable (even if they work for themselves and have income exceeding the requirements of the financial institution). True, despite this, the bank can agree to a meeting, so it’s quite possible to get a mortgage.

The chances of concluding a contract significantly increase:

• Absence of any problems with law enforcement agencies;
• Active participation in social and public life;
• Possession of a prestigious profession;
• Availability of higher education;
• Frequent trips to fashionable resorts and good sanatoriums.

Who is issued a mortgage without proof of income?

You might be interested: At what age do you get a credit card? What documents are needed to apply for a credit card?

An unofficial source of income, in fact, is not an obstacle to obtaining a mortgage loan. Getting a mortgage without official employment is possible for the following categories of borrowers:

Experts who know how to get a mortgage without official employment note several categories of borrowers who can be issued a loan if they provide a certificate of income. These include non-working pensioners, freelancers, students and other citizens.

How to get a mortgage without official employment?

If you don’t know how to get a mortgage for an unemployed person or a person without official employment, use one of the methods listed below.

Method 1. Confirmation of income

This option is suitable for private entrepreneurs and those who live without official income (receive the so-called “black” salary).

The first must submit a certificate of income in the form of a bank from the territorial branch of the tax service. The second is a corresponding extract from the employer (if, of course, he agrees).

An alternative to this document would be account statements with active receipts, purchase and sale agreements for movable or immovable property, a receipt for payment for commercial training, the presence of a bank deposit and other papers that can confirm the client’s solvency.

Additional evidence of the borrower's reliability is an agreement on any type of insurance, a civil passport, as well as TIN and SNILS certificates.

Method 2. Attracting guarantors and co-borrowers

For married couples in which either the husband or wife is officially employed, it will be much easier to get a loan from the bank.

The fact is that when drawing up an agreement, the income portion of the spouse is taken into account without fail, so a mortgage can be issued for two people - a working person and a non-working person. In addition, officially employed relatives or close people of the borrower can act as co-borrowers.

As for guarantors, everything is a little more complicated with them. Their income portion is also taken into account, but its size does not exceed 50% of total earnings.

It should also be noted that both borrowers and guarantors are required to meet basic banking requirements, that is:

• Have no criminal record;
• Be registered in the same locality as the borrower;
• Not to be under investigation;
• Have a permanent place of work;
• Own your own property;
• Do not support dependents, which may include minor children, pregnant wives, elderly parents, etc.;
• Be ready to provide proof of income at any time.

Another mandatory factor is the salary of the co-borrower . This money should be enough not only for his family, but also for the family of the person taking out the mortgage. In this case, the ideal option is people who are not married and do not have children.

The co-borrower should only be someone you really trust . Unfortunately, situations often occur in life when unscrupulous co-borrowers demand compensation for a debt that they (allegedly!!!) paid on their own. Naturally, it will be difficult for an unemployed or unofficially employed homeowner to prove otherwise.

Method 3. Making a down payment

Having decided to take out a mortgage with a down payment, the client can count on the fact that the bank will recognize him as solvent and will not refuse to issue a loan.

The minimum contribution is 20% of the total value of the property. However, there is one unspoken rule here - the larger the initial payment, the higher the chances of a positive result.

If its amount reaches 75%, no one will look at the presence of official employment and other indicators of solvency at all.

Method 4. Providing property collateral

Another convincing proof of the borrower’s serious intentions is his willingness to provide any liquid property as collateral.

They can be:

• Land allotment;
• Private and commercial real estate;
• Vehicle;
• All types of securities (shares in the authorized capital, bonds, shares, etc.);
• Garage;
• Expensive household appliances;
• Agricultural machinery;
• Decorations;
• Gems.

When applying for a mortgage, the apartment itself becomes collateral, so if the client fails to fulfill his obligations, it will simply be confiscated.

The ideal option is one in which the total value of the collateral is equal to the loan amount.

How does the bank treat such borrowers?

Despite the fact that many self-employed borrowers have an income that significantly exceeds the bank's requirements, they are classified as unreliable only because they are not able to present officially certified papers. Therefore, even if a credit institution agrees to issue a loan, it will be under the strictest conditions

:

• an interest rate several times higher than the standard rate;
• with a minimum loan amount.

The credit commission can approve a mortgage for a person who is not officially employed if he:

1. Will make the required maximum contribution for the mortgage loan to the cash desk of the credit institution on the day the agreement is drawn up. Optimally, this is 20-25% of the total cost of the purchased housing, but the larger the contribution, the fewer the formalities required.
2. Will introduce guarantors who will document their solvency and are ready to present their own property as collateral for the loan. The higher their moral and material capabilities, the higher the borrower’s chances. The requirements for guarantors are the same as for an applicant for a mortgage loan:
3. absence of problems with the law enforcement system in the past and present;
4. a stable financial situation, not burdened by debt obligations and the presence of dependents;
5. permanent registration in the borrower’s territory of residence;
6. Availability of an official place of work with confirmation of income level.
7. The willingness of the borrower to provide valuable property as collateral is a sufficient argument for issuing a loan contrary to established requirements. In addition, the housing purchased with a mortgage will be at the disposal of the bank until the debt is repaid.

An additional guarantee of client reliability can be:

• private and commercial real estate;
• land plots intended for construction or agricultural purposes;
• passenger cars and trucks, special equipment;
• securities;
• jewelry with precious stones;
• household appliances and electronics.

It is desirable that the total value of the collateral corresponds to the loan amount

, and the property itself was highly liquid.

Mortgage for students and pensioners

Obtaining a mortgage for non-working students and people of retirement age has its own characteristics, because special programs have been developed for them.

Thus, students who are citizens of the Russian Federation and have reached the age of 21 can receive a loan with deferred payment for the entire period of study. In this case, the guarantors are most often the parents.

How to get a loan for pensioners? The following conditions apply to them:

• The amount is issued in rubles;
• The interest rate starts from 11% per annum;
• The repayment period of the debt depends on the age of the borrower and cannot fall on the period when he turns 75 years old;
• The pension must be sufficient to meet all necessary needs and pay monthly payments;
• The borrower's adult children become a guarantee of loan repayment (only if they have a higher solvency).

Both pensioners and non-working students cannot count on the most favorable lending conditions . To insure its own financial risks, the bank will probably set a high interest rate and a short lending period.

Where can you get a mortgage loan for an unemployed person?

If state banks do not approve a mortgage application, the borrower can turn to small credit organizations. For many people, mortgage loans were approved by banks such as Otkritie, VTB 24, Sovcombank, Renaissance Credit, and SKB Bank.

The credit organizations listed above can provide a loan to an unemployed person if he provides liquid property and makes a large down payment.

Brokers can often help you obtain a mortgage loan. The only thing is that you need to carefully choose such a specialist so as not to come across a scammer.

A broker is a specialist who knows the financial market and will help you choose the optimal loan offer. A loan that is unprofitable for the client is of no interest to him. For his services, he charges a fixed amount, which does not depend on the interest rate or the size of the mortgage loan.

Mortgage for a young family without official employment

How can a young family get a mortgage without an official job? To apply for a loan, citizens of this category must take part in the project of the same name.

In this case, you can prove your own solvency using the following methods:

• By filling out a certificate of income according to the bank form;
• Taking a labor organization as a guarantor;
• By providing both oral and documentary evidence;
• By opening an account or debit card with a bank and becoming a regular customer (suitable for freelancers, shareholders, investors, etc.).

How to confirm solvency?

The main document to confirm income

This is a certificate of income for individuals, which cannot be provided by those who do not have official employment. But there are other ways to prove your financial solvency.

Often used, but not entirely legal, is the provision of a fictitious income certificate, which was obtained with or without the consent of the employer. The method is quite dangerous, since falsification and provision of knowingly false documents is a criminal offense.

Information about income in the bank will be checked without fail. If the information comes to light, then most likely the bank will not sue. But he will definitely refuse a loan, and will also enter information into the credit history, which may negatively affect the ability to subsequently take out any other loan.

Alternative option

Providing a certificate from the employer in the bank form. This will require the employer's consent to disseminate this information, which is not always possible.

Another “cunning” way to get a mortgage approved by a bank is to get a job for the period necessary to meet the banks’ requirements. Employment can be real or nominal, when a person is simply registered in some organization. After the loan is approved, you can quit; no one will check your employment further.

It is possible to get a loan to purchase an apartment without an official income certificate through a consumer loan. When applying for a consumer loan, most banks do not require confirmation of sources of income; as a rule, the information indicated by the client in the application form as income level is sufficient.

You can prove your solvency in legal ways

• By providing copies of documents confirming receipt of funds,
• Civil contracts for the provision of services (such agreements are also concluded in case of informal employment),
• Certificates of completed work,
• Statements on the movement of funds in a bank account,
• Lease agreements, if the source of income is the rental of real estate or equipment,
• Certificates of receipt of benefits, social payments, tax deductions,
• Declaration of income, in case of work as a freelancer, broker or individual entrepreneur,
• Information about the availability of securities that provide constant passive income.

That is, even if you do not have official confirmation of the source of income according to the 2NDFL certificate, then if you have a real monthly income sufficient to repay loan payments, you can count on mortgage approval.

Banks giving mortgages without official employment

Which bank gives loans to non-performing borrowers? As of 2020, similar services are provided by a number of financial institutions in Russia:

• Tinkoff;
• VTB;
• Sberbank;
• Rosselkhozbank;
• Delta Credit;
• Opening (for Military Mortgage).

Contact small organizations offering special promotions . They fight for every client, so your chances of getting a loan increase significantly.

An application for a mortgage can be submitted either online or through a personal visit. The latter option is more acceptable, because each case is considered individually.

It should also be noted that each financial institution offers its own conditions. You can find out more information on interest rates, loan terms and the amount of the down payment on the official websites.

If none of the options suits you, try taking out a mortgage without a certificate or guarantee. However, remember that the price for such an advantage will be the shortest possible debt repayment period and an unusually high lending percentage.

To save time and effort, use the services of a mortgage broker. They will submit your application to several banks at once, which will significantly speed up the process.

Is it possible to get a mortgage without a 2-NDFL certificate?

Most banks do not want to cooperate with a person who cannot present documents regarding his official earnings. Financial companies need guarantees that the money issued will be returned on time.

Current offers

Loan without refusalLoan with arrearsUrgently with your passportCard loans at 0% Installment cardsEarning money from home

Why is this so important? The thing is that a mortgage is always issued for a fairly large amount, and the lender needs to have reason to be confident that a person who has received significant funds will be able to pay them on time in accordance with the schedule.

One of the main documents that financial institutions today accept as confirmation of the income of a future borrower is a 2-NDFL certificate. In this case, it is important for borrowers to prove their solvency to the bank by any means.

Loan without refusalLoan with arrearsUrgently with your passportCard loans at 0% Installment cardsEarning money from home

If you don’t work at all, then don’t even contact lenders, since no one will agree to give you money, even on special conditions. And this will not be anything good for you, because a mortgage is very expensive, you will need to pay significant amounts every month for the loan itself + insurance for your property.

And if you do not do this, the bank will sue you and take the purchased home to pay off the debt. And neither the children, the disabled, nor the pensioners registered there will interfere with this; the law is on the side of the creditor.

If you have a certain stable income, but you cannot document it, then you have real chances. For example, at Sberbank, if you make a contribution of more than 50%, you can get a mortgage with a minimum package of documents. Read more about this company's mortgage programs here.

Consumer loan is the best alternative to mortgage lending

If banks do not agree to issue a mortgage without proof of income, use an alternative option and take out a consumer loan to purchase a home. There are a lot fewer problems with it.

Firstly, you do not have to provide proof of income. Secondly, the whole procedure happens very quickly - just come to a financial institution that provides such services and fill out the appropriate form.

It will become the official legal document confirming the credit relationship between the bank and the borrower.

The form will contain the following information:

• Conditions for issuing a loan;
• Terms of its repayment;
• Features of the application of penalties that come into force in case of late repayment of payments.

Now you know how to get a mortgage if you work informally . The main thing is to realistically assess your financial capabilities and the risks that accompany this process.

Video: Mortgage without income certificate

What risks might an unemployed person who takes out a mortgage face?

An unemployed person who managed to obtain a mortgage bears the same risks as a person who had an official income at the time of filing the application.

While paying off the debt, he may encounter the following situations:

• his financial situation will deteriorate sharply due to loss of income or health problems;
• the cost of housing will fall sharply, and the proceeds from its sale will not be enough to fully repay the debt;
• the cost of the insurance company’s services and the amount he must pay annually for policy renewal will increase.

How to increase your chances of getting your application approved

You may be interested in: How to find out bank details: the easiest and fastest ways, tips

Banks try to cooperate with solvent clients, working with whom does not carry high risks. There are several ways to increase your chances of getting your mortgage loan application approved:

• Attracting guarantors. A mortgage for a married couple is approved provided that one of the spouses is a co-borrower and has a high income and official employment.
• Making a large down payment - from 40% or more of the value of the property. In this case, the bank can not only approve the mortgage, but also lower the interest rate.
• Availability of additional sources of income.

In the absence of official employment, an application for a mortgage loan can be approved if guarantors are provided, which can be friends or relatives of the borrower. All calculations in this case are carried out based on joint income, which increases the chances of approval of the application.

Is it possible to get a mortgage without official employment? It is advisable to provide the manager with documents confirming solvency. Such documents may include a lease agreement, printouts from bank cards, or certificates from bank accounts.