Being self-employed is something that has grown and become increasingly popular. Self-employed workers can be contract workers in a particular niche, gig workers, or small business owners. In each sector of self-employment, there is always a need for funding. The funding may be for equipment, help with a new start-up, or assistance in other areas of your career. When this happens, you may begin to look for loan programs. Here are some of the loan programs you may want to consider as a self-employed worker.
Home Equity Programs
You may not think about your home as a way to get the money you need as a self-employed worker. You can use your home equity and a home equity program. What this does is help you take out a loan on the equity you have in your home. Depending on the program you choose, you may be able to apply for this type of program with five years or more equity in your home. Keep in mind that this is not something you can do often. It usually is a one-time option program. However, it can be suitable if you are willing to have a longer mortgage time or have the adjustments made to your mortgage that are necessary.
Personal Loan Programs
There are numerous personal loan programs out there. The misconception is that these programs are for people with traditional income. The truth is, an increasing number of personal loan programs are now working with self-employed workers. The lenders tend to need not only your credit score and report but also your proof that you have a steady income. This means showing that you may earn a certain amount every month. Though the amount may be higher some months, the standard amount remains the same. This proves your income and that you have the ability to pay the loan you get. Personal loan programs also do not have specific items you can spend the money on.
If you need money specifically for your business, then you may want to look at business and small business loan programs. These programs will offer you a specified amount of money that needs to be used directly for business options. These programs tend to offer amounts based on your business type, the income through the year, and what you made in the previous year. They look for how stable your business is and how likely it is to remain stable.
These are just a few of the loan programs available to you as a self-employed worker. There are many programs through banks, credit unions, small business organizations, and community loan organizers. If you are in need of a loan, begin by contacting your payment institutions and small business options. Also, discuss the option with local loan companies that work with people in your industry. They can help you with the programs available to you and show you how to apply.