Mortgage Guidelines For Remote Workers

Mortgage Guidelines For Remote Workers

Gustan Cho Associates are mortgage brokers licensed in 48 states

This guide covers 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.

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

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Will working remotely be the new normal going forward? 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.

Many companies found out remote workers are more productive than those who report to a brick-and-mortar location.

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? 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.
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What is a Remote Wage Earner?

Remote work refers to a work arrangement where employees can perform their job duties outside of a traditional office environment. Instead of commuting to a physical office, remote workers can work from home, a co-working space, or any location with internet access. This approach to work has become increasingly popular due to technological advancements, changes in organizational structures, and the desire for greater flexibility among employees.

Key Aspects of Remote Work

Advances in technology, particularly the internet, video conferencing tools, collaboration platforms, and project management software, have made it possible for remote workers to stay connected and productive. Remote work offers greater flexibility in terms of work hours and location. Employees can often choose when and where they work, which can lead to improved work-life balance. Effective communication is crucial for remote teams. Video calls, instant messaging, and project management tools are used to facilitate communication and collaboration among team members who may be geographically dispersed.

Challenges on Mortgage Guidelines For Remote Workers

While remote work provides many benefits, it also comes with challenges. Potential issues include feelings of isolation, difficulty in separating work and personal life, and the need for effective time management. Remote work can lead to increased productivity for some individuals, as they can create a customized work environment that suits their preferences. However, it also requires discipline and self-motivation.

Policies on Mortgage Guidelines For Remote Workers

Organizations often need to establish clear remote work policies to address expectations, communication protocols, and security measures for remote employees. Remote work allows companies to tap into a global talent pool, as they are not restricted by geographical locations when hiring employees. Companies must consider security measures to protect sensitive data when employees are working outside of a controlled office environment. This may involve using virtual private networks (VPNs) and secure communication tools.

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Hybrid Work Models For Remote Workers

Some organizations adopt hybrid work models, combining remote and in-office work. This allows employees to enjoy the benefits of both flexibility and in-person collaboration. The adoption of remote work has been accelerated by various factors, including the COVID-19 pandemic, which forced many organizations to quickly transition to remote work models to ensure business continuity. As a result, remote work is expected to continue evolving and becoming a more integral part of the modern work landscape.

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.

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.

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.

Companies can also consolidate the duties of workers. Remote workers can save time commuting. Spend that time on other tasks. Save fuel and the wear and tear on their vehicles.

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.

Employers can shut down many offices or reduce their space and save a lot of money. Companies can have a wider base in recruiting quality workers.

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.

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Examples of Remote Jobs

Mortgage Guidelines For Remote Workers

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:  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.  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:

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.

Remote Career Positions Expected To Become the New Norm

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. Gustan Cho Associates has a national reputation of being able to do loans other lenders cannot do. Over 80% 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.

Qualifying With a Lender With No Overlays on Mortgage Guidelines For Remote Workers

If you have any questions about this guide on mortgage guidelines for remote workers, please do not hesitate to contact us at Gustan Cho Associates. 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 Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at alex@gustancho.com. The team at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays.

FAQs on Mortgage Guidelines For Remote Workers

What is remote work, and why has it become more common recently? Remote work refers to a work arrangement where employees can perform their job duties outside of a traditional office environment. It has become more common due to technological advancements, changes in organizational structures, and the desire for greater flexibility among employees. The COVID-19 pandemic also accelerated the adoption of remote work.

What are some key aspects of remote work? Remote work relies on advances in technology like the internet, video conferencing tools, and collaboration platforms. It offers flexibility in work hours and location, which can improve work-life balance. Effective communication is crucial for remote teams, using tools such as video calls and instant messaging.

What challenges do remote workers face? While remote work has benefits, it can lead to feelings of isolation, difficulty in separating work and personal life, and the need for effective time management. Discipline and self-motivation are important for remote workers.

Do organizations need policies for remote work? Yes, organizations should establish clear remote work policies that address expectations, communication protocols, and security measures for remote employees. Security measures are especially important to protect sensitive data when employees work outside of a controlled office environment.

Are hybrid work models common for remote workers? Yes, some organizations adopt hybrid work models, combining remote and in-office work to offer employees both flexibility and in-person collaboration. The COVID-19 pandemic accelerated the adoption of remote work models.

How has the mortgage industry adapted to the increase in remote workers? Lenders have eased mortgage guidelines for remote workers, allowing employees to work for businesses in one part of the country while living in another. To qualify for a mortgage in a different state, borrowers typically need a letter from their employer stating they are remote workers and intend to remain so for the next three years.

What are the benefits of working from home for remote workers and companies? Remote workers can save time and money on commuting, enjoy flexibility, and have the ability to purchase homes anywhere. For companies, it can lead to cost savings on rent and the ability to tap into a wider talent pool.

Are all jobs suitable for remote work? No, not all jobs can be done remotely. Jobs that require human contact or physical presence, such as police officers, firefighters, doctors, and nurses, are typically not suitable for remote work. However, many industries are transforming some or all of their positions into remote job roles.

What are some common remote job positions? Common remote job positions include teachers, consultants, mortgage industry professionals, sales professionals, freelance professionals, technical support professionals, attorneys, engineers, architects, and online business owners, among others.

How can remote workers qualify for a mortgage with a lender with no overlays? Remote workers can qualify for a mortgage in a different state by providing a letter from their employer confirming their remote work status and intention to remain a remote wage earner for the next three years. Some lenders, like Gustan Cho Associates, specialize in offering mortgage options without lender overlays.

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This blog about Mortgage Guidelines For Remote Workers was updated on February 6, 2024.

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3 Comments

  1. We would like to take advantage of the equity in our home and pay off as much debt as possible.
    We had an appraisal done in July 2021 and walked away from a refinance that we spent 3 months working on with another lender.
    We saw that you offer a 15 day close in certain situations and that is what we are interested in if possible.

    1. Employers will verify remote employment by sending a verification of employment. Simply put, yes, some people will need a remote work letter for mortgage loan applications, though it may vary from situation to situation. During the underwriting process of a mortgage loan application, the underwriter is responsible for verifying the information you provide, including income and employment.

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