Alternative Income Loan: How Freelancers Qualified for a Mortgage
- By Jim Blackburn
- on
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 Loan
- 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 Loan, 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.
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.”
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