Whose cash is it anyway? New income-verification requirements create hurdles for self-employed, contractors
By Caitlin Coakley For those looking for a home, it might be a buyer’s market right now — as long as the shopper is not self-employed. During the housing bubble, loans with no income-verification requirements — also known as no-doc loans — offered people who didn’t get a regular biweekly pay stub to get a loan without having to dig up old paychecks and account for every penny. Now, thanks to new income-verification requirements, getting a no-doc mortgage loan is difficult to impossible, experts say. “Prior to the credit market tightening, there were loans that didn’t require income documentation,” said Nicole Hall, spokeswoman for Charlotte-based LendingTree, an online lending exchange. “We don’t really see that anymore. That impacts people who are self-employed.” It’s impacting Charlotte-area real estate professionals, too.