Bank Statement Mortgage & 1099 Mortgage Enable Self-Employed Creatives To Buy A Home Without W-2s
- By Jim Blackburn
- on
- 1099 Mortgage, Bank Statement Loans, Buy A House, Self-Employed Loans
Alternative Income Mortgage Case Study: Fort Lauderdale, FL
Alternative Income Mortgage options can help self-employed buyers qualify without traditional W-2s. Here’s how Liam (freelance videographer) and Vanessa (Etsy shop owner) in Asheville, NC used an alternative documentation loan to buy their mountain cottage fixer-upper—without overexplaining tax returns full of write-offs.
Client Profile
- Names: Liam & Vanessa S.
- Ages: 36 & 34
- Professions: Freelance Videographer + Etsy Shop Owner
- Location: Asheville, NC
- Home Type: Mountain cottage fixer-upper
- Purchase Price: $344,000
- Loan Type: P&L / Alternative documentation mortgage
- Down Payment: 12%
- Credit Scores: 709 & 688
The Challenge
As two self-employed creatives, Liam and Vanessa didn’t have traditional W-2s. Their income was steady but came from gigs, online sales, and inconsistent deposits. They’d been told “no” by banks who only understood linear employment.
They needed a mortgage lender who could recognize real income patterns, not just tax returns full of write-offs.
The Strategy
We qualified them using an Alternative Income Mortgage, leveraging a combination of:
- Profit & Loss statements prepared by their CPA
- 12-month average of deposits
- Strong credit and rental history
- A flexible lender familiar with non-traditional income streams
We kept documentation simple and the process creative.
Compare options: An alternative income mortgage complements other self-employed paths like a Bank Statement Mortgage or Flexible
Income Home Loan.
The Outcome
- They were approved with only 12% down and no PMI
- Monthly payment fit within 33% of averaged income
- They bought a cozy mountain home with space for a creative studio
- Their lender is already pre-approving them for a renovation loan in phase two
Quote from Vanessa:
“We thought homeownership was for 9-to-5ers. It turns out you just need the right loan program and someone who gets how creatives earn.”
Why an Alternative Income Mortgage?
For self-employed borrowers, an Alternative Income Mortgage can use P&L statements and deposit averages in place of strict W-2s. It’s ideal when tax write-offs depress “taxable income” but actual cash flow supports the payment. You’ll still verify assets, credit, and history—just with documentation that reflects how you really earn.
Who This Helps
- Freelancers, contractors, and gig workers
- Entrepreneurs with variable income
- Creatives and e-commerce sellers (Etsy, Shopify, marketplaces)
- Anyone whose tax returns don’t reflect true cash flow
Get a Similar Approval
Curious whether an Alternative Income Mortgage fits your situation? We’ll review your P&L, deposits, credit, and goals—then recommend the best path (including bank statement or flexible income options if they’re a better match).
FAQs
A loan program that evaluates income using P&L statements, bank deposit averages, or other alternative documentation instead of traditional W-2s.
Often, yes—P&L and 12-month deposit averages can be used, along with credit, assets, and housing history. Your scenario determines the exact docs.
A Bank Statement Mortgage relies primarily on 12–24 months of statements. An Alternative Income Mortgage can blend P&L + deposits and other docs to paint a fuller picture.
It depends on loan type, LTV, and credit. In this case, the clients put 12% down and no PMI was required.
Programs vary, but mid-600s to 700+ are common target ranges. Stronger credit can improve pricing and terms.
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