Mortgage Guidelines For Remote Workers On Home Purchase

This ARTICLE On Mortgage Guidelines For Remote Workers On Home Purchase. Mortgage Guidelines For Remote Workers have been lightened up by lenders due to the coronavirus pandemic. The COVID-19 Pandemic has changed the way companies operate their workforce. During the pandemic, many companies ordered employees to work at home. Many employees who reported to a brick-and-mortar location were instructed to practice social distancing and were not allowed to report to physical locations. However, workers were given the option of working remotely from home. Millions of workers were provided with company laptops and other technological equipment and started their new journey from working from home. The whole U.S. economy was shut down for over two months. However, many workers who worked from home did not lose their jobs.

Many Employers Are Instructing Workers To Work From Home After States Reopen

As time passed and states started reopening, many companies started to realize that changing their business models by requiring employees to work from home proved to be more profitable than requiring them to report to a physical brick and mortar location:

  • Will working remotely be the new normal going forward?
  • Does this mean remote workers can purchase a home in any state they want?
  • Will companies save a lot of money by not having brick-and-mortar offices?
  • One thing for sure is companies realize they get more productivity from remote workers than those who report to a brick and mortar location
  • The average worker spends two hours per day in commute time
  • Remote workers save money on auto and fuel expenses

In this blog, we will discuss and cover how mortgage underwriters follow Mortgage Guidelines For Remote Workers On Home Purchase.

Mortgage Guidelines For Remote Workers: Is Working From Home The New Normal?

Working remotely is nothing new in the workplace. However, a large percentage of workers were forced to work from home due to the coronavirus pandemic. Working remotely proved to be a success for many companies and employees. Now with dozens of states reopening, many companies are offering employees to work remotely. Working remotely may be the new normal. Many workers are realizing the benefits of working remotely. Just the time savings on the daily commute is a major benefit. Most workers spend two hours on their daily commute. There is much flexibility, benefits, and cost savings in working from home.
Many companies found out remote workers are more productive than those who report to a brick-and-mortar location.

Benefits Of Working From Home 

The benefits of working from home outweigh working at a brick-and-mortar location. This holds true for both the company and the employee. For the company, rent for a physical location is one of the highest costs of running a business. They can shut down many offices and/or reduce their space and save a lot of money. Companies can have a wider base in recruiting quality workers. Companies can also consolidate the duties of workers. For remote workers, they can save time commuting and spend that time on other tasks. Get to save fuel and the wear and tear on their vehicles. However, the biggest benefit for remote workers is they can buy a home anywhere. They can relocate out of state. Many workers who live in California, New York, and other high-priced states with high taxes can relocate to lower-taxed states with affordable housing. Californians can get more house for their money in other low-taxed states like Florida, Texas, Georgia, Tennessee, Indiana, Mississippi, Michigan, Kentucky, Alabama, Colorado, North Carolina.

Common Remote Job Positions

Not all jobs can qualify for working remotely. For example, jobs that need human contact often cannot be worked remotely. Police officers, firefighters, doctors, dentists, nurses, factory workers, maintenance workers, mechanics, auto bodyworkers and technicians, and laborers often do not qualify for remote worker positions. However, many jobs that required workers to report to a brick-and-mortar physical location can transform into remote job positions. There are many industries that are now transforming part and/or all of their business into online business models.

Here are common remote jobs:

  • Teachers
  • Consultants
  • Mortgage industry professionals
  • Mortgage processors and underwriters
  • Loan officers
  • Inside and outside sales professionals
  • Freelance professionals – media, consultant, blogger, editor
  • Technical support professionals– help desk, web design, software developer
  • Marketing industry professionals– graphic artist
  • Attorneys
  • Engineer, architect, online technical support
  • Online businesses

Many industries like the food industry are turning to online business models. Food businesses are establishing online food service models where they ship meals and reducing their brick and mortar presence.

Mortgage Guidelines For Remote Workers Ease Due To Increase In Remote Wage Earners

Mortgage Guidelines For Remote Workers Ease Due To Increase In Remote Wage Earners

We can expect to see more and more companies offer remote job positions. More and more workers will be opting for remote job positions. The commercial real estate markets are already experiencing a mass exodus of businesses not renewing their leases. More people are expected to leave high-taxed states and move to lower-taxed states with affordable housing. Certain states like Illinois, New York, California are experiencing a mass exodus of their taxpayers and businesses to other lower-taxed states with affordable housing. Low-taxed states like Indiana, Florida, Texas, Alabama, Georgia, Kentucky, Tennessee are booming from new residents and businesses moving to their states.

Lenders see the increase of remote workers and have eased lending guidelines. It is now possible for workers to work for a business located in one part of the country and live in the opposite end of the nation. Having a remote job gives homebuyers the flexibility to purchase homes anywhere in the country. To qualify for a mortgage when buying a home in a different state, all the mortgage underwriter needs is a letter by the employer stating the worker is a remote worker. The letter needs to state that the employee will remain a remote wage earner for the next three years.

Qualifying For A Mortgage With A Lender With No Lender Overlays

Income and employment is the most important factor when qualifying for a mortgage. Lenders want to see the borrower’s ability to repay. If you are a remote worker and need to qualify for a mortgage in a different state with a lender with no lender overlays, please contact us at GCA Mortgage Group at 262-716-8151 or text us for a faster response. Or email us at [email protected] The team at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays. Gustan Cho Associates has a national reputation of being able to do loans other lenders cannot do. Over 75% of our borrowers are folks who could not qualify at other lenders due to their lender overlays or because they got a last-minute mortgage loan denial.

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