New York program helps gig workers qualify for mortgages

The New York City Housing Partnership launched a new homeownership initiative aimed at helping gig workers and self-employed New Yorkers qualify for mortgages — funded through a multi-year partnership with Airbnb.

The program — called Pathways to Homeownership — is designed to assist workers who rely on nontraditional income sources such as freelancers, seasonal workers and gig economy participants, in navigating mortgage requirements and purchasing their first homes.

According to the Housing Partnership, the program is expected to support approximately 1,000 workers each year.

“The lack of regular paystubs, W-2s or 1099s to document income often puts gig workers at a disadvantage when applying for a mortgage to buy their first home,” said Jamie Smarr, president and CEO of the New York City Housing Partnership. “The economy has undergone significant shifts for middle-class Americans.

“The goal for our new Pathways to Homeownership program is to help gig workers, freelancers, seasonal workers and the self-employed with non-traditional sources of income become homeowners. The program will also advise them how to present rental or hosting income to mortgage lenders when buying a house.”

The Pathways to Homeownership program offers workshops and individual counseling tailored to documenting gig and self-employment income for mortgage approval.

Participants also receive guidance on accessing city, state and private down payment assistance programs — along with training on sustaining ownership, avoiding foreclosure and building equity.

“Homeownership is one of the strongest pathways to building long-term financial stability and generational wealth, but too often low- and middle-income New Yorkers without traditional income sources have been shut out of the American Dream,” said Warren Gardiner, Airbnb New York senior policy manager. “We’re committed to supporting the NYC Housing Partnership in making homeownership a reality for New Yorkers to further the work they have been integral to for decades across New York City.”

The initiative expands the Housing Partnership’s existing HUD-approved Homeownership Counseling Program, which has operated since 2005 and serves low- to moderate-income New Yorkers.

“We partner with labor unions, organizations representing gig economy workers and community and faith-based organizations to reach target populations with financial coaching, subsidy navigation and ongoing post-home purchase counseling to sustain mortgages, accelerate equity growth and build intergenerational wealth,” Smarr added. “This helps create knowledgeable and default-resilient buyers ready for a lifetime of homeownership.”

The organization also offers a landlord and tenant training program for buyers purchasing homes with rental units, which is required for certain Community Reinvestment Act mortgage products.

Funded in part through the Airbnb partnership, the Housing Partnership continues its broader mission of creating and preserving affordable housing across New York City.

The nonprofit — now in its 44th year — has worked with private developers, financial institutions and government agencies to help create and preserve nearly 100,000 low- and moderate-income housing units in the city’s five boroughs.