Alternative Income Mortgage Loans

Purchase or Refinance:

• 10% down payment depending on the credit score
• Up to 80% LTV for a cash out refinance depending on the credit score
• Credit scores as low as 550
• Paystubs, W2s, 1099s and tax returns not required

Property Type:

• Single-Family
• 2 -4 Units
• Condo
• Coop
• Townhouse
• Second Home
• Non-Warrantable Condo

What are Alternative Income Mortgage Loans?

Alternative income mortgage loans are financial products designed for individuals who may not have traditional sources of income, such as a regular job with a steady paycheck. Therefore, these loans are particularly useful for self-employed individuals, freelancers, small business owners, or those with non-standard income streams.

Traditional mortgage lenders often require proof of consistent income and a stable job history, which can make it challenging for people with unconventional income sources to qualify for a mortgage. Meanwhile, alternative income mortgage loans offer a way for these individuals to secure financing for a home purchase or home refinance.

What Type of Alternative Income Mortgage Loans are Available?

Bank Statement Loans – A bank statement mortgage loan is a type of  mortgage loan that allows individuals who are self-employed or have irregular income to qualify for a mortgage based on their bank statements rather than traditional income documentation such as tax returns or pay stubs.

Asset Depletion Loans – An asset depletion mortgage loan is a type of mortgage loan that allows borrowers to qualify for a mortgage based on their assets and the potential income generated from those assets.

1-Year Tax Return Loans – A 1-Year Tax Return Mortgage Loan is a specialized type of mortgage loan designed for individuals or self-employed borrowers who may not have a full two years of tax returns or traditional income documentation to qualify for a conventional mortgage.

1099 Only Loans – A “1099 Only Mortgage Loan” is a specialized type of  mortgage loan designed for individuals who earn income as independent contractors or freelancers and receive Form 1099-MISC or Form 1099-NEC instead of traditional W-2 forms.

P&L/VOE Loans – A “P&L/VOE Mortgage Loan,” also known as a “Profit and Loss (P&L) Statement/Verification of Employment (VOE) Mortgage Loan,” is a specialized type of mortgage loan that allows borrowers to qualify based on their Profit and Loss statement and Verification of Employment.

Written by: Chris Luis, loan officer for Mortgage-World.com

• Chris Luis covers mortgages and the housing market. Chris Luis has over 20 years experience in the mortgage industry.