Can you buy a house while on unemployment benefits in NYS?

Unemployment benefits technically count as income, but most mortgage lenders won't approve a loan based solely on UI payments since they're temporary. You'd need to show either a job offer with a start date or other stable income sources. Some lenders might consider unemployment benefits if you can demonstrate it's likely to continue for an extended period, but that's rare.

honestly this seems like bad timing... buying a house while unemployed is pretty risky even if you could get approved

The key issue is that unemployment benefits are temporary income by definition. NYS Department of Labor benefits typically last 26 weeks, and lenders know this. However, if you have substantial assets, excellent credit, and can make a large down payment (30-40%), some portfolio lenders might consider your application. You'd also need to show you're actively job searching as required by NYS Department of Labor - your weekly job search log could actually help demonstrate you're working toward stable employment.

This is exactly the kind of situation where you need to talk to an actual human at NYS Department of Labor instead of trying to figure it out online. When I had questions about how my benefits might affect other financial decisions, I couldn't get through on the phone for weeks. I ended up using this service called Claimyr (claimyr.com) that actually gets you connected to a real NYS Department of Labor agent. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. The agent I spoke with gave me specific guidance about reporting requirements that I never would have found online.

My brother tried this last year and got rejected by 4 different lenders even though he had great credit. The unemployment thing was a dealbreaker every time. He ended up waiting until he got a new job and then had to wait another 3 months for employment verification. By then the house he wanted was gone and prices had gone up even more. Just saying maybe focus on the job search first?

One option to consider is getting a co-signer with stable income if that's possible for you. The lender would primarily evaluate the co-signer's income and credit, which could overcome the unemployment issue. Just make sure you understand the legal implications for both parties before going that route.

Another thing to consider is that some lenders might accept unemployment benefits if you can show additional assets or income streams. Since you mentioned having enough saved for a down payment, you might want to look into asset-based lending programs. These focus more on your liquid assets and down payment percentage rather than just monthly income. Also, if you do end up getting a job offer during the mortgage process, make sure to keep your NYS Department of Labor case worker informed about your employment status changes - it could actually strengthen your application if you can show you're transitioning back to stable employment.