Are You Self-Employed, a Gig Worker, or a Real Estate Investor Looking for Mortgage Options?
Mortgage Options for Self-Employed Buyers & Investors
Check out our latest video discussing mortgage options for self-employed buyers, gig workers, and real estate investors. If you don’t fit the traditional W-2 borrower profile, great financing options are still available!
Flexible Mortgage Solutions for Non-Traditional Buyers
Diana Geremia: Alan, if I have clients who are self-employed or don’t have a traditional W-2 income, what options do they have in today’s market?
Alan Dillon (Rate Mortgage): Great question! Many non-qualified mortgage (non-QM) products are designed for buyers who don’t fit the Fannie Mae or Freddie Mac loan criteria. These loans are defined by the CFPB and cater to:
- Self-employed individuals with only one year of tax returns
- 1099 earners and gig workers
- Real estate investors who prefer alternatives to conventional loans
Non-QM loans accounted for 20% of all home purchases last year, and their number doubled from 2022 to 2023.
What About Interest Rates?
Rates for non-QM loans can be competitive, especially with rate buy-down options. Buyers can lock in rates in the mid-6% range by structuring a prepayment penalty, which is often beneficial for investors planning to hold properties long-term.
Need Help Finding the Right Mortgage?
Whether you’re a self-employed buyer, gig worker, or investor, we can help you find the best mortgage solution for your needs.
