69.6% of Americans reported having a side hustle – yet securing a mortgage is still a nightmare

Gig economy. Side hustle. Moonlighting. Just three phrases that show how many Americans boost their earnings. According to research from Dollar Sprout, in 2024 approximately 69.6% of Americans reported having a side hustle – an increase of 40% from 2022. Why? A second job has become a necessity for many, largely due to economic factors such as inflation and increased living costs.
However, despite the commonality here, the traditional mortgage market often excludes this vital segment of society: individuals who earn their income in non-traditional ways.
Evan Stone (pictured), CEO of Champions Funding, has spent his career addressing this gap, highlighting how underserved communities – particularly those reliant on gig work, small businesses, or cash-based income – are systematically disadvantaged.
‘Traditional mortgage programs really don’t work so well for them’
“Approximately 90% of mortgages are underwritten to Fannie Mae, Freddie Mac, and FHA VA, USDA standards,” Stone told MPA. These programs, while beneficial for certain borrowers, fail to account for those who do not fit their narrow credit profiles.
“Small business owners, gig workers, people earning money in cash—traditional mortgage programs really don’t work so well for them,” said Stone.
Stone and his team have positioned Champions Funding as a bridge for these borrowers, creating proprietary guidelines within the non-QM (qualified mortgage) subset.
“We believe we’ve solved for that through proprietary guidelines,” he told MPA. “And it's proven out. Over the last two-plus years we've been lending in this market – we’re [really] solving an inequity gap that exists.”
The company’s certified designation as a Community Development Financial Institution (CDFI) further cements its mission to foster financial inclusion.
“We have to live at the intersection of what is deemed in the market to be accessible credit, but then also be smart about how we build these programs to serve our borrowers that we want to serve,” Stone said. “The way that we maintain a focus on credit qualities is that our borrowers have to save up a reasonably significant down payment and they have to demonstrate that whatever tradelines they do have – that they've been responsible with their payments. However, there's a whole host of other issues that could be presented to them if they were to seek more conventional financing, despite the fact that they saved up for a large down payment.”
68% of side hustlers earn less than $500 per month
However, these large down payments don’t build themselves – and even having a second job doesn’t mean an individual is bringing home a lot of additional cash. Research from Dollar Sprout found that 68% of side hustlers earn less than $500 per month, with just 12% reporting an additional income of over $1,000 per month. Despite this, 77.2% of side hustlers are somewhat or highly dependent on earned income.
Many prospective homeowners, even those with substantial down payments and responsible credit behavior, often fail to meet the rigid standards of traditional mortgage underwriting.
“They’ve done all the right things, but there’s just certain things about their credit profile that don’t fit,” Stone said. By demonstrating to secondary markets that their borrowers are creditworthy, Champions Funding is paving the way for wider adoption of such inclusive practices.
‘It’s a journey, and we’re just getting started’
“It’s a journey,” Stone said. “We're just getting started – but we're proud of the work that we've done. I think we’ve done an excellent job of expanding outreach and opportunity to these disadvantaged borrowers. But there's a lot of work to do, and we certainly need the cooperation of the capital markets to be able to continuously expand and compound the impact that we have.”
Operating in a sector shaped by volatile economic and regulatory shifts has not deterred Champions Funding. Instead, the company has relied on its unwavering mission as a compass.
“I wouldn’t say we’ve changed a lot of the formula that we believe works,” Stone said. Despite potential disruptions – whether regulatory or economic – Stone emphasizes the fundamentals.
“At Champions, regulatory compliance is inherent in our DNA. Operating with strict compliance is the ante to play in this game.” he said.
This focus on consistency does not preclude flexibility. Stone and his team remain alert to emerging trends or challenges that could require recalibration. “We’re nimble enough and prepared to pivot,” Stone told MPA.
The sustainability of Champions Funding’s mission lies in its relationship with the secondary market. As a mortgage banker, the company cannot simply keep all loans on its balance sheet. Stone explained the delicate interplay: “We need to keep proving to the secondary market that we know how to underwrite borrowers, that our guidelines are responsible.”
However, Stone was quick to point out the dual responsibility of expanding access while maintaining fiscal prudence.
“We still have to live at that intersection of the credit responsible, the creditworthy, and market accessibility,” he told MPA.
And, despite the challenges, Stone remains optimistic about the potential for broader inclusion in the mortgage market. Reflecting on Champions Funding’s early success, he highlighted the importance of persistence.
“We think there’s even more opportunity for us to open the guidelines a little bit to help even more borrowers,” he said. The company has since announced a new expansion of their core guidelines and introduced new products to the non-QM and DSCR market to help drive their mission forward of accessible financing for all.