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Can I Do a Cash-Out Refinance Without a Job?


The Spire

With proof of employment being an essential qualification for a cash-out refinance, the self-employed, seasonally employed or unemployed can dread applying for such a mortgage. Proof of work shows that a borrower has a stable income. Therefore, lenders are assured of their ability to repay the loan. Homeowners that don’t fall under that category appear as risky to lenders even if you are confident in your ability to repay the mortgage loan. Even though it’s challenging to qualify for a cash-out refinance without a job, it’s not impossible. 



1.    Find a Co-Signer 

A co-signer in a cash-out refinance agreement pledges to pay your mortgage in case you don’t. In this scenario, the co-signer will provide their proof of employment instead of you. The presence of a co-signer assures the lender that the loan will be repaid. Your co-signer will need to meet all the lender’s financial requirements, such as have a low DTI ratio and a good credit score. 

Finding a co-signer isn’t easy. Remember, they will be legally liable to pay back the refinance should you default. A close friend or family member makes the ideal co-signer in most cases. As the primary borrower, you must stay true to your word and avoid getting the co-signer in financial trouble. 


2.    Consider a No Income Verification Cash-out Refi 

This is a type of mortgage refinance where there is no income verification. It can be an excellent option for the unemployed or seasonally employed. But there is a catch to it. The interest rates of a no-income verification cash-out refi are typically higher. Also, not many lenders offer such services. You will have to engage in thorough research. 


3.    Prove Your Ability to Repay the Loan 

Depending on how understanding your lender can be, they can allow you to prove your ability to repay the loan. One way to do that is by showing your assets. This isn’t the conventional way cash-out refi works, but there is a slight possibility of approval. Instead of checking proof of income, they can evaluate income from your liquid assets. You can also provide financial information showing your earnings from freelance or investments. It’s important to note that this isn’t a popular service.  


4.    Invite a Loved One

This mainly refers to a spouse. Because you don’t have an income, if your spouse is still working and you live in the same home and will utilize the funds from the equity together. You can invite them to co-borrow. This will increase the debt-to-income ratio. And, if your spouse meets all the requirements, you can qualify for a cash-out refinance. This strategy can work perfectly well, provided the couple stays together. 


If You Are Interested in a Cash-out Refinance, Do So Before Quitting/Retiring from Your Job. 

As you can see from the above, qualifying for a cash-out refi without a job is difficult. If you have always wanted to utilize your equity to upgrade your home, consolidate debt or pay for a particular expense, get a cash-out refi before quitting your job or retiring. This way, you will avoid the unemployment obstacle during application. 


The Bottom Line 

If all these techniques don’t work, don’t be afraid to ask the lender directly if it’s possible to get a cash-out refi without a job. Lenders have varying requirements, and they can consider your application if you have a good credit history and can prove the ability to repay the mortgage. 

A Lending Hand for Financing Home Mortgages

Spire Financial (A Division of V.I.P. Mortgage, Inc.) brings lending expertise to you. All of our loan officers offer personalized communication for every client, guiding them through the process. We can show you ways to maximize your finances and unlock future opportunities. Spire Financial keeps you in control of refinancing, debt consolidation, and home equity. Together, we can achieve your financial goals.