Independent mortgage brokerage from home

Home buyers, people refinancing, and sometimes real estate investors. In most deals the fee is paid by the borrower or the lender at closing.

A commission or origination fee on each loan that closes, usually a percentage of the loan amount. Income arrives in lumps at closing, so cash flow can be uneven.

• Sales and relationship building
• Comfortable with numbers and loan paperwork
• Organized and detail-focused
• Clear explaining to nervous first-time buyers

• Federal and state licensing: loan originators generally need NMLS licensing, and companies often need their own license, so check your state
• Many states require a surety bond and a minimum net worth or a qualifying individual with experience, so check what applies to you
• Compliance rules on disclosures, advertising and how brokers are paid (such as CFPB and RESPA rules); consider a compliance consultant
• Errors and omissions insurance and data security for borrowers' sensitive information
• Slow start: it can take months to build referrals and close the first loans, so plan for cash reserves
• Home occupation rules, HOA or lease limits if you work from home

Estimates put startup costs at typically around $8,000 to $35,000, depending on licensing, any surety bond, insurance and your home office setup. Plan for cash reserves too, since it can take months to build referrals and close the first loans.

Check federal and state licensing: loan originators generally need NMLS licensing, and companies often need their own license. Also check surety bond and net worth requirements in your state, and compliance rules such as CFPB and RESPA on disclosures, advertising and broker pay.

Estimates suggest monthly revenue of typically around $3,000 to $15,000, depending on how many loans you close and how quickly your referrals build. Expect to work at least about 30 hours a week.