In the past, mortgage pros likely only worked with borrowers who had a traditional 9 to 5 job, but that has changed in recent years as the job landscape continues to shift. We’re now in the era of the gig economy where freelancers, gig workers, and self-employed borrowers make up a larger (and growing!) percentage of the workforce today.
As you start to inevitably work with more of these borrowers, chances are you’ll need to incorporate alternative mortgage programs into your product offerings. Here we’re breaking down everything you need to know about the current gig economy, who fits into this profile, and the types of loan solutions you can offer clients when you partner with LendSure.
What is a Gig Economy?
First things first: What exactly is a gig economy? It’s a labor market that features more individuals taking on short-term, temporary positions (gigs) instead of full-time work. These positions rely heavily on the Internet and digital platforms where workers can easily offer services and connect with clients. Instead of being employed on a long-term basis, these self-employed individuals take on specific tasks. Think Uber drivers, freelance writers, photographers, or even a handyman.
With the gig economy, workers have more flexibility to establish their own schedules and work with clients they choose. Companies are also reaping the benefits by cutting costs and choosing to hire part-time, freelance roles instead of full-time employees. With an economy like this, employers are able to reach a wider range of workers since they’re not confined to one specific location. Now, they have the ability to hire anyone from anywhere—all they need is a laptop and good connection.
The gig trend is quickly growing. In fact, according to TeamStage’s report, 36% of US workers are part of the gig economy. And it’s estimated that over 50% will be participating in the gig economy by 2027. The best part of these statistics? They present a fruitful opportunity for brokers like you.
A Solution for Self-Employed Borrowers
While gig workers enjoy a more flexible work-life balance, they often face financial challenges when it comes time to securing loans. These individuals have trouble documenting income since their profits may fluctuate from month to month. Additionally, they may have a limited history of tax returns. Unfortunately, traditional lenders struggle to evaluate their finances and most often struggle to offer these borrowers financing.
The good news—you can provide alternative solutions that are flexible and just as strong as conventional loans. The perfect solution for these borrowers is LendSure’s Bank Statement loan program. Instead of submitting W2s, tax returns, and other income docs, self-employed borrowers have the option to simply submit bank statements (12 or 24 months of personal or business) as proof of income and qualify for a mortgage. This not only gives them the flexibility to secure funding, it also allows lenders to get a more holistic view of their finances.
Closing with LendSure
Everyone deserves a chance to finance their next home. That’s why we offer a Bank Statement loan program designed to give self-employed borrowers the flexibility they need in today’s market.
With ratios as low as 10% and fast pre-qualifications (in as little as 24 hours on average), you can feel confident your clients will get a “yes” when you partner with LendSure.
Another reason LendSure is a go-to for brokers is our ability to qualify borrowers who have mixed-income types. Take for example, someone who started their own freelance business after getting laid off. Traditional lenders may be hesitant to provide financing because they don’t have two years’ worth of tax returns. Fortunately, we’ve created a solution for individuals who face this problem.
With our Bank Statement program, we allow borrowers to submit mixed-income docs. This means this freelancer can submit the w-2 document along with 1099 forms they have from various clients. Click here for more info on how our process works.
Other Program Highlights:
- Loan amounts up to $3,000,000
- LTV up to 90%
- No tax returns are required
- Business bank statements and personal bank statements permitted
- The borrower does not have to be 100% owner of the business
- Multiple business bank accounts are acceptable
- W-2 with bank statements combinations allowed
- P&L statements are NOT required
- Business expense ratio as low as 10%
The LendSure Way
It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers and ratios, and data to consider, but we know that behind every file, there’s an individual with unique circumstances seeking a loan.
We work hard to offer our commonsense take on lending to borrowers seeking funding for the home of their dreams, another addition to their investment property portfolio, or refinancing of a currently owned property.
Are you ready to grow your business? Conforming loan approval guidelines can be restrictive, but we want to offer our mortgage broker partners the education, tools, support, and guidance they need to say “yes” to more of their clients. This ensures happy borrowers and opportunities for bottom-line growth. What are you waiting for? Let’s get started!
Are you ready to benefit from a commonsense approach to lending? Contact us today to learn more about non-QM loans and how partnering with LendSure Mortgage Corp. can help grow your bottom line.