Does unemployment affect getting mortgage approval in NY?
I've been collecting unemployment benefits from NYS Department of Labor for about 8 weeks now after getting laid off from my construction job. My wife and I were planning to buy our first house this spring and already had pre-approval from last year, but now I'm worried about how my unemployment situation will impact our mortgage application. Does anyone know if lenders will automatically reject you if you're currently receiving UI benefits? We have good credit scores and my wife still has her full-time job, but I'm stressed that the unemployment will kill our chances. Has anyone successfully gotten a mortgage while on unemployment in NY?
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James Johnson
Most lenders will require stable employment history for at least 2 years, so being on unemployment definitely complicates things. However, they'll look at your total household income including your wife's salary. The key is showing you have a solid plan for returning to work - do you have any job prospects lined up? Some lenders might consider unemployment benefits as temporary income if you can document when you expect to return to employment.
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Emily Nguyen-Smith
•I have a few leads but nothing concrete yet. The construction industry is slow right now but should pick up in spring. Should I wait until I'm back to work or can we still apply now with just my wife's income?
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Sophia Rodriguez
we went thru this same thing last year!! my husband was on unemployment for 3 months and we were able to get approved but it took longer than usual. the lender wanted extra documentation from NYS Department of Labor showing his benefit amount and duration. they also required a letter explaining the layoff wasn't performance related. it was stressful but worked out
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Emily Nguyen-Smith
•That's encouraging! What kind of documentation did NYS Department of Labor provide? Was it something you had to request specifically?
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Mia Green
If your wife's income alone can qualify you for the mortgage amount you need, that might be the easiest path. Lenders can approve based on one spouse's income if it meets their debt-to-income requirements. You could always add your name back to the mortgage later through a refinance once you're employed again. This avoids the whole unemployment complication altogether.
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Emily Nguyen-Smith
•We calculated that her income alone would be tight but might work for a smaller house. I just hate the idea of settling for less when I know I'll be back to work soon.
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Emma Bianchi
honestly the whole mortgage process is such a pain even without unemployment issues. every lender has different rules and some are more flexible than others. i'd suggest talking to a mortgage broker who can shop around for you and find lenders that are more understanding about temporary unemployment situations
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Lucas Kowalski
I've been trying to reach someone at NYS Department of Labor for weeks to get documentation for my own mortgage application and their phone system is impossible. If you need to get benefit verification letters or employment history, I found this service called Claimyr at claimyr.com that actually got me through to a real person. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Saved me so much frustration dealing with their busy phone lines.
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Emily Nguyen-Smith
•Thanks, I'll check that out. I was dreading having to call NYS Department of Labor for documents.
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Olivia Martinez
WAIT until you're back to work! mortgage lenders are super picky right now and unemployment is a huge red flag. even if you get approved the interest rate will probably be higher. better to wait a few months and apply with stable employment than risk getting stuck with bad terms
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James Johnson
•While waiting might be safer, interest rates could also go up in the meantime. It's really a personal decision based on their specific financial situation and risk tolerance.
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Charlie Yang
same boat here, been on UI for 6 weeks and house hunting is on hold indefinitely. so frustrating when you know it's just temporary but lenders treat you like you're unemployable
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