Portfolio lender shows flexibility for ‘Contract Employee’

Mortgage adviser: Liz Bayer, ProMortgage.

Property type: Single-family Craftsman home in Marin County.

Appraised value: $2.4 million.

Loan amount: $1.92 million.

Loan type: 5-year adjustablerate mortgage.

Rate: 4.75.

APR: 4.874 percent.

Backstory: Returning clients reached out to Liz Bayer when they wanted to buy a new home in Marin County.

The couple had both been in the same line of work for more than 20 years, however, the wife had gone from being a W-2 employee to a contract employee, so her status changed to being a “self-employed” borrower.

Normally, jumbo lenders require a minimum of two years of self-employed income history, but my borrower was self-employed for 15 months.

Additionally, the couple planned to receive gift funds from their parents that would cover 15 percent of the 20 percent down payment. Fortunately, Bayer found portfolio lenders who would allow the shorter history, particularly since the borrower was still in the same line of work when she was a W-2 employee.

Complications arose from some lenders not allowing the gift funds. Bayer sifted out lenders who would not allow such a contribution and found a great portfolio lender who allowed for gift funds toward the down payment and permitted less than two years of selfemployment job history.

The great news is that the rates were reasonable, and the lender was able to close in 25 days.

Liz Bayer, ProMortgage, 415-383-3111, lizforloans@gmail.com.