My wife and are hoping to buy a house this summer once she gets her 'grown-up' job, but I am on unemployment and we are concerned that it will not count as income when applying for a mortgage.

It is income I will be receiving until I find work that pays more, so I could see an argument that it is more 'fixed' and 'stable' then a paycheck is.

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    Another question to ask: is now the best time to get into a huge obligation like a mortgage? Unemployment and starting a new job?
    – MrChrister
    May 11 '11 at 4:21

Short answer: No. Unemployment insurance is not income. It will not be counted towards your mortgage. It is definitely not seen as "more fixed and stable" than a paycheck - it is an indication of employment stress, and prevents the banks from working up projected earnings for you going forward.

It's great your wife is getting a job later in the year. Employment, however, is not the only factor taken into account by the banks, and unless your wife has a high-earning capacity degree in a stable field - such as medicine - you'll likely need other things on your side to swing a mortgage quickly after she starts working.

  • She will be a special ed teacher, starting at $38/year.
    – Mason240
    May 11 '11 at 13:49
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    Teaching isn't bad - it's one of those professions that doesn't pay high but looks okay on an application. It sounds like you guys are just starting out, and I think assets, savings (saving habits), credit history, your future employment situation, student loans, etc are all important. You could always do a preliminary check/touchbase with your bank to get their feedback (a financial healthcheck, as it were). Many banks are happy to outline plans of action for clients - it never hurts to ask.
    – gef05
    May 11 '11 at 14:31

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