If you’ve recently lost your job, you may find yourself in need of a loan to help cover the cost of living. However, with the banks’ high standards, approval may be hard to find with no income. In these types of circumstances, taping into your home equity may be the option you’ve been looking for.
Can You Get A Home Equity Loan With No Income?
To summarize, yes you can get a home equity loan without an income.
Home equity loans have a different approval process than, for example, personal loans. Home equity loan lenders, like Alpine Credits, approve applicants based on the value of their houses compared to how much mortgage they have paid off. Banks, on the other hand, typically approve applicants based on credit scores, income, and debt levels.
Home equity loans are under the umbrella of secured loans, so lenders are at ease when they decide to lend you money. Because the loan is tethered to your home, lenders don’t have to worry about you defaulting on your home and can freely offer lower interest rates.
How To Get A No-Income Verification Home Equity Loan
When it comes to applying for a home equity loan from an alternative lender, like Alpine Credits, you can be open and honest about your employment and income status. This is because income is not the most important factor used during the approval process.
When you do approach a lender, mention that you are currently looking for a new job or are in the middle of transitioning careers. That way, they understand and can help you in the best way they can.
Most alternative lenders understand that job loss and career change can happen, but it shouldn’t prohibit you from accessing financial privileges. Income is not a dominating factor in our application.
Stated Income Home Equity Loans
Similar to a no income verification home equity loan, lenders offer stated income home equity loans to those who do make an irregular income. An example of this might be salespeople or artists who get commissioned and can only make money based on what happens.
Stated income may be a hassle to prove because the borrower will have to collect all their paystubs and invoices. However, lenders like Alpine Credits will take your word when you say that you make an irregular income.
Benefits Of A Home Equity Loan
You have more opportunities for financial growth when you take out a home equity loan. Even without an income, these benefits are still available to you.
Keep Your Equity Growing
Consumers without income are usually forced to dip into their savings. While unemployment is the exact reason why having money set aside is so important, using up too much of that savings could be an issue in the future, not to mention you’ll be missing out on earned interest. Furthermore, if you’re forced to access your RRSP early and that could affect your retirement.
However, accessing your home equity has no effect on the equity itself. No earned interest will be lost, unlike with savings accounts, TFSAs, and RRSPs. Houses gain value over time, and the higher your equity, the higher your loan can be.
Access A Larger Loan Amount
A home equity loan essentially lets you borrow from yourself. As a result, you’ll quickly see approval for larger loan amounts that you typically can’t get with traditional lenders. You don’t even have to use all of your home’s equity either. Whether you need $10,000 or $200,000 or anything in between, you can find that in a home equity loan from an alternative lender.
Enjoy Lower Interest Rates
Traditional lenders see no-income borrowers as risks, so they attach a high-interest rate to the loans they give out. On the other hand, home equity loans have lower interest rates because they are secured loans.
Flexibility
Life is unpredictable and home equity loan lenders understand this. In such events, you are free to discuss payment terms. Depending on what your situation requires, lenders can allow you to make interest-only payments or defer the payments.
Easy Application & Approval
Home equity loans do not have stringent standards, easing any applicant’s worry about qualifying for a loan. The application is not as daunting as applying for an unsecured loan. At Alpine Credits, our team will strive to make the application process as stress-free as possible.
Home Equity Loan FAQs
What interest rate can I get for a home equity loan?
What can I use a home equity loan for?
Can you get denied a home equity loan?
Home Equity Loans with Alpine Credits
If you are currently not making an income, but have a home and are in need of funds, do contact our team at Alpine Credits. You can see an approved application in as little as 24 hours. The process is effortless, and the outcome will be worth it. To learn more about your home equity, contact us and we’ll answer any questions you might have and provide you with solutions.
