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Can I Qualify for a Mortgage Loan in California With a Remote Job?

The COVID pandemic caused a sharp increase in the number of remote jobs across California and the rest of the nation. And while the pandemic has fortunately eased, interest in remote job opportunities remains elevated.

A common question among work-from-home employees is: Can I qualify for a mortgage loan in California with a remote job? The short answer is yes.

If you have steady and sufficient income and the ability to repay your loan, you could qualify for a mortgage loan while working remotely. The fact that you have a remote job might have little to no impact on your ability to qualify for a home loan.

Getting a Mortgage in California While Working Remotely

According to the Public Policy Institute of California, 16% of Californians currently work from home all of the time. And 19% have a hybrid job situation, where they work at home part of the time. That’s a pretty large chunk of the overall workforce.

A lot of these remote workers in California wonder if they are able to qualify for mortgage loan and buy a house. The good news is that you could get approved for a home loan even while working in a remote position, as long as you have the ability to repay the loan.

This will be easier to understand if we look at it from the lender’s perspective.

When you apply for a mortgage loan in California, the bank or lender will review your financial situation. Above all, they want to make sure you have the financial ability to repay your debt. They do this by looking at your income situation, and also your current debt load. If your overall debt-to-income ratio is favorable, you stand a good chance of qualifying for a mortgage loan.

The fact that you work remotely has minimal impact on the qualification process. In fact, a remote worker can be just as well-qualified as someone who works for a company in their physical office location. As mentioned earlier, it’s the income and ability to repay that matters most, from the lender’s perspective.

Different Rules for Self-Employed Borrowers

It’s also important to distinguish between a self-employed remote worker, and someone who works for an employer in a remote capacity. These are two different things. Everything mentioned in the previous section applies to people who work remotely for an employer.

When it comes to self-employment, there are some additional considerations.

Self-employed home buyers in California can also qualify for mortgage financing. They just have to provide some additional documentation during the application process. For example, a self-employed borrower might have to provide a profit-and-loss (P&L) statement when applying for a loan.

But here again, it’s the ability to repay that matters most. If a self-employed individual who works from home has sufficient income and manageable debt, they have a good chance of qualifying for mortgage loan.

The bottom line here is that a person with good credit, sufficient income, and a manageable level of debt, should be able to qualify for a home loan to buy a house in California. And this applies to remote workers as well.

A Remote Job Could Make Buying a Home Easier

There are also some advantages to working remotely, when trying to buy a home in California.

The biggest advantage has to do with geography and flexibility. When you work remotely, you don’t necessarily have to live in the same city as your employer. That’s the whole point of a remote job. This gives you the flexibility to expand your search zone, when it comes to house hunting.

For example, a person who works remotely for a company based in San Francisco (where the median home price is well over $1 million), could buy a house in someplace like Solano County, where home prices are much lower.

Remote work can also save you a lot of money on commuting-related expenses. Remote employees tend to spend a lot less money on gas and vehicle maintenance, when compared to those who endure long daily commutes. And as a home buyer, you could channel those savings right back into your home purchase.

Have Questions about the Mortgage Process?

Are you a remote worker seeking a mortgage loan in California? Do you have questions about the financing process or mortgage requirements? We can help!

Bridgepoint Funding is located in the Bay Area and serves the entire state of California. We can review your current financial situation, including employment and income, to determine how much you’re able to borrow. We could then provide you with a pre-approval letter to give you an added advantage in the real estate market.

Please contact our staff if you have mortgage-related questions or would like to apply for a loan. We look forward to helping you.

Mike Trejo

Mike Trejo is a Bay Area mortgage broker with 20+ years of knowledge and experience.

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