A non-status mortgage is a mortgage that is given to a person that doesn’t have proof of income or a previous mortgage history. Basically, the lending isn’t dependent on the income of the applicant; the applicant simply states they can afford to make the payments.

Most conventional mortgage lenders have a standard method that allows them to assess a potential borrowers income. However, there are certain instances where this method doesn’t work – a lottery winner for example. Occasionally it may be hard to guarantee income also if you work on a bonus structure or are a seasonal worker.

In order to get a non-status mortgage you’ll usually fall into one of the following groups: self-employed workers, contract workers, commission based employees or seasonal workers. If you do qualify for a non-status mortgage your interest rates on the mortgage will be much higher because your risk is also much higher. Therefore it’s better to get another type of mortgage if at all possible.