According to the Bureau of Labor Statistics, an estimated 15 million Americans were self-employed in 2015. Many others rely on bonuses or commissions as a large part of their income. These non-traditional income streams may be difficult for traditional lenders to accommodate, but an increasing number of “non-bank” lenders are allowing these buyers to enter and thrive in the housing market.
For example, GuardHill Financial Corp. of New York offers interest-only loans or adjustable-rate mortgages with payments that vary in tune with the buyer’s income. Citadel Servicing Corp. of California offers “aspirational” non-prime loans, which typically require down payments of 20 to 40% and interest rates ranging from half of one percent to 1% higher than the prevailing market rate.