Significance

• Your debt-to-income ratio is the most important ratio in qualifying for a mortgage. If there is no income to cover debt, you usually cannot qualify. However, if you can show that you have a strong likelihood of having a stable income in the near future, you may be able to refinance.
  
  

Function

• If you are in an industry where periods of unemployment are normal, such as a traveling factory worker in a union, you still may be able to qualify for an FHA loan.
  
  

Time Frame

• The time frame of unemployment may matter in the loan qualification process. If are currently unemployed, but have a letter of employment for a job that will begin within six months to a year, you may still qualify for the refinance.
  
  

Considerations

• Unemployment income is still considered income, and can be used to qualify for a mortgage.
  
  

Misconceptions

• Unemployment does not automatically mean that you cannot refinance, it just means that you are under a different set of rules than the average borrower.