Can you buy a house on unemployment benefits from NYS Department of Labor?
I've been collecting unemployment from NYS Department of Labor for about 4 months now and my benefits run until next March. My credit score is actually decent (around 720) and I have some savings from my last job. There's a house in my neighborhood that just came on the market and it's perfect for me and my kids. The mortgage payment would be less than what I'm paying in rent right now. Has anyone successfully gotten a mortgage while on unemployment? Do lenders even consider UI benefits as income? I'm worried they'll just reject me automatically when they see I'm unemployed.
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Jacob Lewis
Most traditional lenders won't count unemployment benefits as qualifying income for a mortgage. They typically require steady employment history and proof of ongoing income. However, some programs like FHA loans might be more flexible if you can show other income sources or assets. You'd need to document your NYS Department of Labor benefits and show they'll continue for a significant period.
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Mia Rodriguez
•That's what I was afraid of. My benefits don't run out until March but that's only like 6 months away. Would having a co-signer help at all?
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Amelia Martinez
I actually did this back in 2019! I was on standby unemployment through NYS Department of Labor (seasonal layoff) and managed to get approved. The key was showing the lender my recall notice from my employer and proving my unemployment was temporary. If you're on regular UI without a return-to-work date, it's much harder. You might want to wait until you find new employment.
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Ethan Clark
•Wait, standby status makes a difference? I didn't know that. How long did the approval process take?
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Amelia Martinez
•Yeah standby is different because you have a confirmed return date. Took about 6 weeks but this was pre-COVID so things might be different now.
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Mila Walker
honestly this sounds like a terrible idea... what happens if your benefits get cut off or you can't find work after they end? then you're stuck with a mortgage you can't afford. rent gives you flexibility to move if you need to find work somewhere else
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Mia Rodriguez
•I get what you're saying but I'm paying $2100 in rent and the mortgage would be $1800. Plus I'd be building equity instead of throwing money away.
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Logan Scott
If you're having trouble getting through to NYS Department of Labor to verify your benefit continuation dates, I used claimyr.com a few weeks ago when I needed to speak with an agent about my claim status. They have this video demo that shows exactly how it works: https://youtu.be/qyftW-mnTNI. Saved me hours of trying to call myself. Getting official documentation about your benefit timeline might help with the mortgage application.
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Chloe Green
•Never heard of that service before. Does it actually work or is it just another scam?
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Logan Scott
•No it's legit. They basically get you connected to an actual NYS Department of Labor agent instead of you sitting on hold forever. I was skeptical too but it worked for me.
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Lucas Adams
Have you looked into first-time homebuyer programs? Some of them have different income requirements. Also check with credit unions - they're sometimes more flexible than big banks about unconventional income situations.
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