Can I Still Get a Mortgage if I Lost My Income Due to COVID-19?

Can I Still Get a Mortgage if I Lost My Income Due to COVID-19

Unfortunately, our unemployment rate has risen significantly these past weeks, and it appears that it may continue this trend a bit longer before it starts to de-escalate. What does that mean for home buying hopefuls? How does losing your job affect your ability to get approved for a mortgage?

Let’s look at different scenarios. Keep in mind that these are just possibilities. The most accurate answers for your particular situation are just a click or call away. Contact us today for professional loan guidance.


Yes, you can! However, you will need to apply jointly with someone that does have income. Couples, where only one is employed, apply for home loans often, so there is nothing unusual about this situation. As long as your partner has enough, steady income, then there’s an excellent chance of getting approved.

Loan approval and the amount approved depends on many factors, including how much income the applicants earn. In other words, when it comes to income, it’s a matter of how much income not how many applicants are employed. 


When you first apply for a loan, there’s an income verification process. If you lost your job or have been furloughed due to COVID-19, then you’ll want to report this status change to the lender. It’s common practice to verify the income once more before closing, so there is no reason to try to hide this income loss.

Continuing towards loan approval depends on whether you applied solo or you applied jointly. If you applied with just your income, then you will need to pause the process for now.

If you applied with a partner and their income is enough to qualify what you were quoted, then likely all is well, and you can move forward as planned.

If your income provided a lot of weight to the application, then you may qualify for significantly less or may even need to pause the process. Things may be slightly different if you are furloughed.

If you find yourself temporarily without income because of mandatory closures and social distancing measures, and you are expecting to return to work, then there may be options available. Sometimes a letter from your employer that explains the circumstances and optimism for your return to employment may be enough to continue with the application.

Don’t let it get you down if you’re forced to pause the application. The market will be shifting quite a bit over the next weeks, so getting a deal is still possible. Use this time to educate yourself on the home buying process and improve your credit. Subscribe to our blog posts and browse our past articles for useful home purchase and refi advice.