By Bill Lyons | Published on March 18, 2022
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    While the gig economy has been around for a while, since COVID hit, it has completely blown up. In 2020, the gig economy grew by 33%, expanding 8.25x faster than the US economy as a whole. The same year, 2 million Americans tried “gig work” for the first time, and 34% of the US workers are now involved in the gig economy.  And that number is rising, with the value of total transactions projected to increase from $204 billion to $455 billion in 2023.  

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    More and more people are relying on Uber, Lyft, Etsy, Home Based businesses, Upwork and even OnlyFans for full time income.  Compared to a 9-5 job, working as a self-employed, gig worker or independent contractor offers not only flexibility, but unlimited earning potential.  But these self employed workers can face challenges when they want to qualify for mortgages.  The reason?  The industry’s mostly automated underwriting processes are geared towards borrowers with steady paychecks who receive annual W-2 statements.  Most mortgage lenders impose stricter rules for self-employed borrowers than for those who work for someone else.

    Bank statement loans have taken over the non-traditional stated income loans of the past as a new alternative for borrowers who are unable to verify their income in the traditional way by providing the previous two years tax returns, W2s and pay stubs. These are non-QM loans, non-traditional loans or expanded criteria loans that allow other forms of documentation to prove the ability to repay. 

    Bank Statement loans for OnlyFan income? That’s right!  Just as it sounds, a bank statement loan allows the borrower to verify his or her income with as little as 12 months of bank statements.  Griffin Funding doesn’t exclude income from job titles such as online creators, social media influencers, YouTubers, podcast hosts, MLM distributors and the like. 

    Historically, bank statement loans have been very popular with the following types of borrowers: Business owners, Freelance employees, Consultants, Contract workers, Independent contractors, Sole proprietors, Entrepreneurs, Realtors and Retirees.  Since the rise of people searching for independence via a global pandemic, the sub categories of “self-employed” has expanded vastly.

    If you don’t have traditional income or tax returns, that doesn’t mean it should be difficult to obtain home financing.  You do not have to submit any tax returns or financial statements other than your bank statements to purchase a new home or to cash-out refinance an existing home that you already own.  This enables self-employed borrowers to easily access home loans,  without the challenge of their taxes not reflecting their full income. 

    After providing as little as 12 months of bank statements, Griffin Funding will be able to determine how much you can afford to borrow.  Then we verify your bank statements by calling your bank or filling out a verification of deposit request and mailing or faxing it to your bank.  If you are using your business bank statements to qualify, we will still need to see the expenses you incur as a result of owning a business. However we will not penalize you for expenses that you have written off on your tax returns.  

    Aside from being able to qualify for a non-traditional mortgage in general, there are many other advantages to a Bank Statement loan.  You can get a bank statement loan for as little as 10% down depending on other factors such as credit etc.  You can borrow up to $5 million, or do a cash-out refinance loan of up to 85% of the value of your property.  There are fixed or adjustable rate options available, and you may even have the option for an interest-only mortgage. 

    When it comes to getting a bank statement loan, the main hurdle is finding the right lender to work with.  Our team at Griffin Funding specializes in bank statement loans for self employed, gig workers or 1099 income workers.  If you have questions about this type of loan program, or to see if you qualify- contact us today!  (855) 394-8288. Apply now.

    Bill Lyons

    Bill Lyons is the Founder, CEO & President of Griffin Funding. Founded in 2013, Griffin Funding is a national boutique mortgage lender focusing on delivering 5-star service to its clients. Mr. Lyons has 22 years of experience in the mortgage business. Lyons is seen as an industry leader and expert in real estate finance. Lyons has been featured in Forbes, Inc., Wall Street Journal, HousingWire, and more. As a member of the Mortgage Bankers Association, Lyons is able to keep up with important changes in the industry to deliver the most value to Griffin's clients. Under Lyons' leadership, Griffin Funding has made the Inc. 5000 fastest-growing companies list five times in its 10 years in business.