You may have heard the term “side hustle” from a friend or seen it on Facebook. It’s the other job(s) that helps pay some bills or finance a vacation. Side hustles are becoming more and more common - especially since the COVID-19 pandemic. Millions of Americans have learned that a side hustle not only helps them work (and earn) when they want to, but it can really help their finances.
Let’s get a little more granular with what a side hustle could be. Think about the last time you sat down with an ice cold Zima to scroll through Instagram. Wow, is that a social media influencer holding the exact same Zima you are drinking? I didn’t know that [insert the name of someone clearly awesome] drank Zima too?!? That influencer is working. The money they earn is likely part of their side hustle.
Other examples are drivers for Uber/Lyft/DoorDash or maybe someone who writes blog posts. Really, really great blog posts on things like mortgages. I wonder who that could be? I digress…While these professions can definitely be full time jobs, more and more folks are earning some extra money by working when the can or want to. Unfortunately, it creates a challenge when looking for a mortgage. Just like self-employed workers like accountants, consultants, independent contractors, actors, singers, and writers will tell you - the conventional loan approval process relies on two years worth of W2s and a few paystubs. On top of that, the rules for a loan are more stringent for self-employed borrowers than an applicant who works for someone else.
I’m here to tell you about the bank statement loan and how this can the choice for those who are self-employed or have a regular side hustle. A bank statement loan is a non-QM loan - which is a fancy way of saying it’s a nontraditional loan that uses alternative forms of income verification. In this case, a bank statement loan would be using…drumroll please…your bank statements. That’s right, with 12-24 months of bank statements, a lender can verify your income (taking into account your legal tax deductions) and figure out how much you can borrow.
Getting a mortgage doesn’t have to be so difficult because of your side hustle. The thing is, some have found that their side hustle is so good, that it becomes their main hustle. Most people just call it their job at that point, but you know what I mean.
So don’t stress about the mortgage process if you’ve turned into a full time podcaster or use the advertising money from your YouTube videos as your sole source of income. There’s a way to make it happen with a bank statement loan.
Full disclosure - the lender is also going to look at your credit score and down payments are most commonly in the 10-20% range. Other things that are good to know is that you can look at both fixed and adjustable rate mortgages, and cash out refinance options also exist.
If you want to take the next step towards a bank statement loan, why don’t you give the team at Truss Financial Group a call. They specialize in bank statement loans, so this is the place to start. Just be sure to give them a shoutout on the next episode of your podcast once everything is finalized.
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