April 1, 2021

Selfemployed

Wall Street bet on financing self-employed home buyers. Will there be regrets?

Wall Street’s comeback story in U.S. housing finance has hinged on lending to self-employed borrowers and others who don’t quite fit the mold.

It financed millions of homes in recent years using alternative forms of documentation to gauge a borrower’s ability to afford a mortgage, sometimes at double the rates of interest as conventional mortgages.

But after a year of the pandemic, the small but important corner of housing finance referred to as the “non-qualified mortgage” (non-QM) segment has impairments that remain stubbornly high when compared with the rest of the U.S. housing market.

The non-QM rate of impairment hit

Read More

Can you get a personal loan if you are self-employed?

It can be more complicated for self-employed borrowers to get a personal loan. Here’s what you should know about the process. (iStock)

A personal loan can be used for almost any purpose, from debt consolidation to starting a small business. But it can be challenging to qualify for a personal loan when you’re self-employed because lenders want solid proof of income before approving a loan application.

The good news is, there are still options for individuals who work for themselves to secure a personal loan. However, you may have to jump through some extra hoops first if that’s

Read More

Self-employed, gig workers still waiting on PPP rules for bigger loans

Virojt Changyencham | Moment | Getty Images

The self-employed and gig workers are anxiously waiting for the Small Business Association to update guidelines to its Paycheck Protection Program, which could mean bigger loans for the group.

The Biden administration announced last week changes to how the SBA will calculate forgivable loans for sole proprietors and other small businesses without any employees. The updated formula — which will likely lead to larger loan amounts for non-employer firms, including sole proprietors and independent contractors — will be announced this week.

It’s still unclear when in the week the SBA will update its

Read More