In a world where you can order entire entrees through ride sharing, where you can purchase homemade items from Etsy, or hire an online tutor to help with your son or daughter’s SAT prep – anything is possible, right?
The standard 9-to-5 business job – although still very prominent in the American workforce – has begun to wane. Companies like Uber, Airbnb, and Wag! have been seeing growth in applications and hirings.
While many Americans hold some sort of position in the gig economy – as many as 42 million Americans or 30% of the workforce – most are still having a difficult time obtaining a loan in order to buy a home. To fall under the federal qualified-mortgage (QM) regulations, you need the “normal” documentations to prove you’re qualified; these documents usually include pay stubs or W-2’s, however most of these jobs don’t have these records.
But don’t fret! Last week, the “Self-Employed Mortgage Access Act” was pushed to the floor in Capital Hill in order to help make the home-mortgage process easier for those in the gig economy. Co-sponsored by Sens Mark R. Warner D-Va., and Mike Rounds, R-S.D., this act would expand lenders’ boxes to verify incomes that go beyond what is considered “acceptable”.
So far, this bill has the support of the Mortgage Bankers Association, Consumer Federation of America, and The Milken Institute.
While there does seem to be an awareness for those struggling in the gig economy to buy a home, this process still might be on the table for months ahead. But hey, at least in a world where you can become Instagram famous and sponsor a variety of products for payment – anything is possible.