More borrowers leaning on side income to qualify, exec says
Income has also become less steady. Truework, a Checkr company, found in its 2026 affordability report that the share of mortgage applicants with downside income instability rose from 50% in early 2022 to 62% by mid-2025, and that the severity of those swings nearly tripled.
“What does that mean about both your income stability and volatility, which has also been on the rise over the last couple of years?” Lee said.
Verifying all of that can differ from lender to lender, which matters for brokers shopping a file on a borrower’s behalf. It has to happen quickly too because competition is tight for both the offer on the house and the loan.
A situation that originators are facing more often is a borrower with a salaried job and a side business, she said.
“The person in front of you might say, ‘Hey, I have this W-2 salary job, but I also have a side hustle on Etsy,’” Lee said. “And so, how can you verify that so that if I’m on the edge, I can use all of my qualifying income to be able to qualify for that loan?”
