Mortgage lender for temporary workers now in VA

Mortgage lender for temporary workers now in VA
Want to buy a house, but maybe you work as an independent contractor? Or you're self-employed or own your own business? Your paycheck isn't steady, but you make good money overall. You may still find it hard to qualify for a home loan.

Since the recession, more and more people make their livings as temporary or independent contractors, as companies have hired fewer permanent staff. Industry analysts estimate contingent workers make up 18 percent of the workforce and they're growing fast.

That's why Michael Slavin started Privlo, an online mortgage lender for people with inconsistent paychecks.

"It could be self-employed contractors," said Slavin. "It could be someone who owns a snow removal business who has a big winter, but has a small summer."

Slavin says Privlo looks at an applicant's whole financial picture, rather than just their month-to-month income.

"We can dig into their bank statements and realize they can afford a much higher mortgage payment," said Slavin.

He says they also work with people with good credit, but who had a foreclosure, or a bankruptcy over something like unexpected medical bills.

"Classically, they have really good credit on paper, but had a one-time bad event," he said. "So we get them back into a traditional lending system sooner than a bank can."

Slavin says Privlo is funded through investors, but the loans are backed by institutions. He says Privlo's mortgage loan rates are higher than traditional banks, but are lower than sub-prime lenders.

"Where we are at is in the 6 percent range today," said Slavin. "We're working on a new product in the 5 percent, which is really exciting for us. Then we go up to 9.75 and that's where we see risky credit."

Privlo has been operating in six states, and just moved into Virginia, with hopes of expanding eventually to all 50 states.

Customers can apply for a home loan by phone or through Slavin says their software adjusts as applicants answer questions and asks for specific information and documents that relate to the individual's type of income.

RICHMOND, VA (WWBT) - Copyright 2014 WWBT NBC12. All rights reserved.