top of page

National News: Helping gig-economy workers qualify for loans


What is the gig-economy? It refers to hundreds of income-earning activities that allow workers to set their own hours, work for as long or as little as they choose, and function as independent contractors or freelancers as opposed to salaried employees. Prominent examples include people who work as drivers for Uber or Lyft, assemble Ikea furniture through TaskRabbit and offer rooms in their homes on Airbnb.

But when buying a home, the challenge for these workers is to make their gig-sourced earnings count as income for mortgage-qualification purposes. Lenders typically look for stable and continuing income streams: two years of documented income plus reasonable prospects that those earnings will continue for another several years. Lenders also routinely obtain tax-return transcripts from the Internal Revenue Service to confirm an applicant’s self-reported income.

Fannie and Freddie are trying to come up with some solutions. The tricky part for both companies: Whatever solutions they develop must still produce high-quality loans with low risks of default at the end of the process, and ideally must be automatable — that is, borrower information could be entered into Fannie’s and Freddie’s electronic underwriting systems at the application stage. Can a computer analyze the full picture and think out of the box or will it require specialized underwriters to evaluate the applicant?

We'll see what happens but at least things are moving in the right direction and it gives hope to the approximate 20-30% of our current workforce.

  • Debora Sanders Realtor Instagram - Your Central Coast Realtor
  • Debora Sanders Realtor Facebook
  • Debora Sanders Realtor Youtube
  • Debora Sanders Realtor Linkedin

Sotheby's International Realty
3775 Via Nona Marie Suite 100, Carmel CA 93923
831-624-9700

License: DRE#01966114

PSA_logo_edited.png
WCR logo.jpg
ILHM_Member_Seal_RGB_Small_1187628351_9922.png
ILHM_GUILD_Seal_RGB_Small_1187628351_1170.png
ILHM_CLHMS_Seal_Grayscale_thumbnail_125_1187628351_7872.png

Debora Sanders is a real estate salesperson licensed by the state of California affiliated with Sotheby's International Realty. Sotheby's International Realty is a real estate broker licensed by the state of California and abides by equal housing opportunity laws. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description. All measurements and square footages are approximate. This is not intended to solicit property already listed. Nothing herein shall be construed as legal, accounting, or other professional advice outside the realm of real estate brokerage.

*All Rights Reserved*

Designed by Kollaborativ  

bottom of page