Can I use NYS Department of Labor unemployment income to qualify for a mortgage application?
I've been receiving unemployment benefits for about 4 months now and my weekly claim amount is $504. My lease is up in September and I was thinking about trying to buy instead of rent again. Has anyone had success using their NYS Department of Labor payments as income verification for a mortgage? I know it's temporary income but wondering if any lenders will consider it. My credit score is decent at 720 and I have about $15k saved up for a down payment.
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Victoria Jones
Most traditional lenders won't accept unemployment income for mortgage qualification because it's considered temporary and uncertain. However, some non-conventional lenders might consider it if you can show a steady payment history from NYS Department of Labor and have other assets. You'd probably need to provide your entire claim history and proof that your benefits won't expire soon.
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Mateo Silva
•That makes sense about it being temporary. Do you know if they consider the total amount you're eligible for or just what you've received so far? I still have about 8 months left on my claim.
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Cameron Black
honestly i wouldn't even try right now, wait until you get a real job again. unemployment doesn't last forever and you don't want to get stuck with a mortgage payment you can't make
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Jessica Nguyen
I actually know someone who got pre-approved using unemployment income last year, but it was through a credit union and they required a much larger down payment - like 25% instead of the usual 10-20%. They also had to show they were actively job searching and had some freelance income on top of their NYS Department of Labor benefits. It's definitely possible but much harder than with regular employment.
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Mateo Silva
•Interesting! Do you remember which credit union? I'm willing to put down more if it means I can stop throwing money away on rent.
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Jessica Nguyen
•It was a local one in Albany area, but I'd suggest calling around to smaller credit unions in your area. They tend to be more flexible than big banks.
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Isaiah Thompson
This is probably a long shot but if you're having trouble getting through to mortgage lenders for clear answers about unemployment income requirements, you might want to try Claimyr at claimyr.com. I used them to get through to NYS Department of Labor when I needed documentation for a different financial application. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Might be worth it to get official documentation of your benefit timeline from an actual agent.
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Mateo Silva
•Thanks I'll check that out. I do need to get some official paperwork from NYS Department of Labor anyway for the mortgage application.
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Ruby Garcia
Have you considered waiting until you find employment and then using your unemployment history as part of your income documentation? Some lenders will look at your total income over the past 2 years including unemployment periods. That way you'd have current employment plus the ability to show you had income during gaps. Just a thought - the housing market might cool down a bit by then too.
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Alexander Evans
ugh the whole system is so unfair. here we are paying taxes on our unemployment benefits but then can't use that same income to qualify for basic things like housing. makes no sense!
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