Not every homebuyer fits neatly into the traditional mortgage mold. Whether you're self-employed, an investor, or someone with significant assets but limited monthly income, qualifying for a conventional loan can be a challenge. That’s where alternative loan programs come in, offering flexible solutions tailored to non-traditional income scenarios.
Here are four alternative programs that may open the door to homeownership:
Business Bank Statement Loans
For self-employed borrowers, proving income with tax returns doesn't always reflect the true earning picture. A Business Bank Statement Loan allows you to qualify based on your business’s bank deposits over a 12–24 month period. This program is ideal for entrepreneurs who have steady cash flow but write off a large portion of their income.
Personal Bank Statement Loans
Similar to the business version, this option is for self-employed individuals who deposit their income into a personal account. Lenders analyze personal bank statements to determine income, giving more flexibility to sole proprietors and freelancers who may not have separate business accounts.
DSCR Loans (Debt Service Coverage Ratio)
Designed specifically for real estate investors, DSCR loans qualify borrowers based on the property’s income potential, not personal income. If the rental income covers the mortgage payment (typically a DSCR of 1.0 or higher), borrowers may qualify without providing tax returns, W-2s, or pay stubs.
Asset Depletion Loans
This program is for borrowers who may not have a regular income stream but hold substantial liquid assets. Lenders calculate a hypothetical monthly income by dividing total assets over a set period (usually 60 or 120 months). It’s a popular option for retirees or high-net-worth individuals.
If you’ve been told “no” before, or just want a more personalized mortgage approach, I’m here to help. Let’s talk about your goals and find the loan program that works for you!
