Mortgage without official proof of income in 2021

Getting a loan is a very popular service among the population. This allows you to quickly solve financial problems and find the required amount of money. This is especially true for the purchase of expensive goods and services, which, of course, includes the purchase of your own real estate. Often, a potential borrower does not have official employment or does not work at all at the moment, but needs to purchase real estate. In this case, a mortgage without proof of income comes to his aid.

Mortgage for non-working people – myth or reality?

People who do not have a work record often ask whether it is possible to get a mortgage without official employment?

According to bank rules, such borrowers are classified as unreliable (even if they work for themselves and have income exceeding the requirements of the financial institution). True, despite this, the bank can agree to a meeting, so it’s quite possible to get a mortgage.

The chances of concluding a contract significantly increase:

• Absence of any problems with law enforcement agencies;
• Active participation in social and public life;
• Possession of a prestigious profession;
• Availability of higher education;
• Frequent trips to fashionable resorts and good sanatoriums.

You can calculate your future loan right here

You can use our advanced calculator with the ability to build a payment schedule and calculate early repayment on this page.

Additionally, we suggest that you read this article, in which we tell you how to quickly earn a large amount of money.

How to get a mortgage without official employment?

If you don’t know how to get a mortgage for an unemployed person or a person without official employment, use one of the methods listed below.

Method 1. Confirmation of income

This option is suitable for private entrepreneurs and those who live without official income (receive the so-called “black” salary).

The first must submit a certificate of income in the form of a bank from the territorial branch of the tax service. The second is a corresponding extract from the employer (if, of course, he agrees).

An alternative to this document would be account statements with active receipts, purchase and sale agreements for movable or immovable property, a receipt for payment for commercial training, the presence of a bank deposit and other papers that can confirm the client’s solvency.

Additional evidence of the borrower's reliability is an agreement on any type of insurance, a civil passport, as well as TIN and SNILS certificates.

Method 2. Attracting guarantors and co-borrowers

For married couples in which either the husband or wife is officially employed, it will be much easier to get a loan from the bank.

The fact is that when drawing up an agreement, the income portion of the spouse is taken into account without fail, so a mortgage can be issued for two people - a working person and a non-working person. In addition, officially employed relatives or close people of the borrower can act as co-borrowers.

As for guarantors, everything is a little more complicated with them. Their income portion is also taken into account, but its size does not exceed 50% of total earnings.

It should also be noted that both borrowers and guarantors are required to meet basic banking requirements, that is:

• Have no criminal record;
• Be registered in the same locality as the borrower;
• Not to be under investigation;
• Have a permanent place of work;
• Own your own property;
• Do not support dependents, which may include minor children, pregnant wives, elderly parents, etc.;
• Be ready to provide proof of income at any time.

Another mandatory factor is the salary of the co-borrower . This money should be enough not only for his family, but also for the family of the person taking out the mortgage. In this case, the ideal option is people who are not married and do not have children.

The co-borrower should only be someone you really trust . Unfortunately, situations often occur in life when unscrupulous co-borrowers demand compensation for a debt that they (allegedly!!!) paid on their own. Naturally, it will be difficult for an unemployed or unofficially employed homeowner to prove otherwise.

Method 3. Making a down payment

Having decided to take out a mortgage with a down payment, the client can count on the fact that the bank will recognize him as solvent and will not refuse to issue a loan.

The minimum contribution is 20% of the total value of the property. However, there is one unspoken rule here - the larger the initial payment, the higher the chances of a positive result.

If its amount reaches 75%, no one will look at the presence of official employment and other indicators of solvency at all.

Method 4. Providing property collateral

Another convincing proof of the borrower’s serious intentions is his willingness to provide any liquid property as collateral.

They can be:

• Land allotment;
• Private and commercial real estate;
• Vehicle;
• All types of securities (shares in the authorized capital, bonds, shares, etc.);
• Garage;
• Expensive household appliances;
• Agricultural machinery;
• Decorations;
• Gems.

When applying for a mortgage, the apartment itself becomes collateral, so if the client fails to fulfill his obligations, it will simply be confiscated.

The ideal option is one in which the total value of the collateral is equal to the loan amount.

Documents confirming income without an official place of work

There are many documents proving the consumer’s viability. The most common among them:

• statement of the current account to which funds are credited;
• official lease agreement for real estate that generates financial income;
• data from a brokerage exchange, which identifies securities that generate profit.

You can go the opposite way and confirm not income, but expenses. Documents on payment of tuition, health insurance, purchase of real estate, car and other large expenses will become additional evidence of solvency.

Mortgage for students and pensioners

Obtaining a mortgage for non-working students and people of retirement age has its own characteristics, because special programs have been developed for them.

Thus, students who are citizens of the Russian Federation and have reached the age of 21 can receive a loan with deferred payment for the entire period of study. In this case, the guarantors are most often the parents.

How to get a loan for pensioners? The following conditions apply to them:

• The amount is issued in rubles;
• The interest rate starts from 11% per annum;
• The repayment period of the debt depends on the age of the borrower and cannot fall on the period when he turns 75 years old;
• The pension must be sufficient to meet all necessary needs and pay monthly payments;
• The borrower's adult children become a guarantee of loan repayment (only if they have a higher solvency).

Both pensioners and non-working students cannot count on the most favorable lending conditions . To insure its own financial risks, the bank will probably set a high interest rate and a short lending period.

Standard requirements for a potential borrower

When concluding a transaction, the bank’s goal is to make a profit. Therefore, issuance is carried out to citizens who meet certain requirements. This guarantees the return of the invested funds, as well as payment of interest in full.

Sberbank prefers to cooperate with persons who meet the following criteria:

• Age range from 21 to 75 years at the end of the contract.
• Citizenship of the Russian Federation.
• Having a regular income of sufficient size.
• The duration of employment in the last place is at least six months, the total length of service over the last five years is at least one year.

Consideration of the application is carried out on an individual basis, therefore it remains possible to conclude an agreement for persons who do not meet the listed criteria. The main condition is confirmation of the borrower’s solvency. Even if you do not have the requested documents, there are several ways you can apply for a mortgage loan.

Mortgage for a young family without official employment

How can a young family get a mortgage without an official job? To apply for a loan, citizens of this category must take part in the project of the same name.

In this case, you can prove your own solvency using the following methods:

• By filling out a certificate of income according to the bank form;
• Taking a labor organization as a guarantor;
• By providing both oral and documentary evidence;
• By opening an account or debit card with a bank and becoming a regular customer (suitable for freelancers, shareholders, investors, etc.).

Where can I apply for a deposit to purchase a home without proof of income?

Until recently, credit institutions were very strict in assessing the solvency of their clients, however, the situation has changed. Now many banks issue mortgage loans to unemployed citizens on fairly lenient terms. This list includes:

1. Gazprombank.
2. Sberbank of Russia.
3. Russian mortgage bank.
4. Tinkoff Bank.
5. VTB 24.
6. Svyaz-Bank.
7. Housing Finance Bank.
8. SMP Bank.
9. Fora Bank, etc.

Important! The lack of official income when obtaining a housing loan leads to stricter terms of the contract. The interest rate in this case is 1-3 percent higher, and the repayment period is shorter.

Banks giving mortgages without official employment

Which bank gives loans to non-performing borrowers? As of 2021, similar services are provided by a number of financial institutions in Russia:

• Tinkoff;
• VTB;
• Sberbank;
• Rosselkhozbank;
• Delta Credit;
• Opening (for Military Mortgage).

Contact small organizations offering special promotions . They fight for every client, so your chances of getting a loan increase significantly.

An application for a mortgage can be submitted either online or through a personal visit. The latter option is more acceptable, because each case is considered individually.

It should also be noted that each financial institution offers its own conditions. You can find out more information on interest rates, loan terms and the amount of the down payment on the official websites.

If none of the options suits you, try taking out a mortgage without a certificate or guarantee. However, remember that the price for such an advantage will be the shortest possible debt repayment period and an unusually high lending percentage.

To save time and effort, use the services of a mortgage broker. They will submit your application to several banks at once, which will significantly speed up the process.

What risks might an unemployed person who takes out a mortgage face?

An unemployed person who managed to obtain a mortgage bears the same risks as a person who had an official income at the time of filing the application.

While paying off the debt, he may encounter the following situations:

• his financial situation will deteriorate sharply due to loss of income or health problems;
• the cost of housing will fall sharply, and the proceeds from its sale will not be enough to fully repay the debt;
• the cost of the insurance company’s services and the amount he must pay annually for policy renewal will increase.

Consumer loan is the best alternative to mortgage lending

If banks do not agree to issue a mortgage without proof of income, use an alternative option and take out a consumer loan to purchase a home. There are a lot fewer problems with it.

Firstly, you do not have to provide proof of income. Secondly, the whole procedure happens very quickly - just come to a financial institution that provides such services and fill out the appropriate form.

It will become the official legal document confirming the credit relationship between the bank and the borrower.

The form will contain the following information:

• Conditions for issuing a loan;
• Terms of its repayment;
• Features of the application of penalties that come into force in case of late repayment of payments.

Now you know how to get a mortgage if you work informally . The main thing is to realistically assess your financial capabilities and the risks that accompany this process.

Video: Mortgage without income certificate

Involving third parties as a co-borrower or guarantor

Based on the fact that it is important for the bank to minimize the risk of non-repayment of funds, it is necessary to convince employees as much as possible of their reliability. Therefore, it is possible to issue a loan with the participation of two persons with equal responsibility for payments.

In most cases, the co-borrower is a spouse. Getting a loan for a family to purchase their own home is much easier. This is due to the fact that the total level of earnings of both spouses is taken into account.

If one of the participants cannot confirm the level of their monthly earnings, then the income of the second participant is taken into account. Therefore, this is one of the most common ways out of the situation for obtaining a mortgage loan if you have unconfirmed income.

The same requirements are put forward to the co-borrower as to the potential client. You will also have to collect an identical package of documents and submit a certificate confirming your regular income. The co-borrower bears equal responsibility for timely payment of loan payments and can become a co-owner of the purchased property.

The guarantor acts as a guarantor of the borrower and is liable to the bank only if there are no payments received from the borrower. Cannot be a co-owner of the purchased property. The level of monthly earnings must correspond to the amount of the loan issued.

Credit cards as a way out

In addition to all of the above, you can get a credit card. Now all banks issue them, even to the unemployed, because they were created specifically for this category of the population. It's difficult to compare getting a credit card to getting a mortgage. But if your dream home lacks a certain amount, then getting a loan of this kind will be the best way out of this situation.

Credit cards are issued even to citizens who previously had a bad credit history. No down payment required. This card is given to you on the day you apply.

In addition, certain credit holidays or credit benefits are now popular. What does it mean? You can pause debt repayments for a while. In this case, the bank will not charge you high interest rates.

But there are also disadvantages when applying for bank credit cards. For example, a high interest rate. Some banks charge money for opening an account, for withdrawing money, for providing balance information, and much more. Some of the bank's fraudulent actions also include incorrect information regarding the balance on the card. Sometimes borrowers deliberately inflate their debts, relying on their client’s ignorance. Only small banks practice such methods of work.