A recent study by Economic Modeling Specialists Int’l found that since the Great Recession ended in 2009, self-employed jobs have declined by 5%. By contrast, salaried positions grew by 4% during that same time period. It’s a statistic that stood out for me because my company, MGIC, was founded when one man set out to follow his dream.

Max Karl’s original idea and his tenacity to see it through spawned an entire industry dedicated to helping people become homeowners. Today’s self-employed borrowers share Max’s can-do spirit.

The Economic Modeling report showed that despite the overall decline, there is a growing opportunity for those looking to be their own boss. According to the report, some of the biggest growth areas for self-employment include medical transcriptionists (375% change from 2012 to 2013), home health aides (22%), web developers (67%) and personal care aides (18%).

Regardless of their field, self-employed borrowers often share a desire for another piece of the American Dream: homeownership. Unfortunately, the nature of their jobs can make it difficult for lenders to evaluate their income for a home loan.

Long looked to as the go-to source for training and tools used in evaluating self-employed borrowers, MGIC can help. Our 2013 MGIC cash flow worksheets provide a line-by-line guide from worksheet to tax form to determine qualifying income and actual monthly cash flow available to the borrower. Each line item in the worksheet is linked to MGIC’s Evaluating the Self-Employed Borrower resource manual to provide you with additional guidance on the specific area of income/loss.

MGIC provides self-employed borrowers the same rates we offer anyone else. We do not raise their premium simply because they are self-employed.

It’s one more way we are helping modern-day pioneers reach their dreams. After all, it takes one to know one.

How are you helping self-employed borrowers achieve homeownership? I would love to hear your experiences. Share in the comments.

Shelley Callaghan

Shelley Callaghan - MGIC Sr. Marketing Program Manager

Shelley joined MGIC in the mid-80s and currently serves as a Senior Marketing Program Manager. She is primarily responsible for MGIC's online and classroom technical training programs.

Through the years, she’s worn many different hats, including managing an MGIC Underwriting Service Center and working on MGIC's national Field Operations team. Her technical savvy is built on her extensive, practical experience and drives the value she places on a strong technical foundation.

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