Buying a Home with Business or Non-Traditional Income: Yes, You Can

Being self-employed, a business owner, a freelancer, or someone with multiple income streams used to make home buying feel impossible. Traditional banks often give these buyers the runaround—or worse, flat-out say no.

At Horizon Funding, we say yes, and we back it up with real solutions. This guide is for buyers who don’t have a W-2, who write off business expenses, or who earn income in ways that don’t always fit in neat little boxes.

If you’ve been told you don’t qualify, or you’re just not sure where to start—read on. You have options.

🧾 The Problem with Traditional Lenders

Most big banks and lenders rely on a rigid model:

• 2 years of W-2 income

• Minimal tax write-offs

• Predictable employment history

If you’re self-employed or earn through 1099s, commissions, contracts, or gig work, that model may not reflect your real income.

Common challenges include:

• Tax returns show low income after deductions

• Multiple income sources without a single employer

• Seasonal or variable income

• Recent switch to self-employment

• Limited documentation or unconventional pay structure

This is where Non-QM (Non-Qualified Mortgage) loans and alternative documentation options come in.

🛠️ How We Help Buyers with Non-Traditional Income

At Horizon, we work with loan programs built for real-world earners—not just textbook cases.

Common loan types we use:

1. Bank Statement Loans

   • Use 12 to 24 months of business or personal bank deposits to qualify

   • No tax returns required

   • Ideal for business owners or 1099 earners

2. 1099-Only Loans

   • Use your 1099 income as the basis for qualification

   • No traditional employment history needed

   • Great for contractors, sales reps, or gig workers

3. Asset-Based Loans

   • Qualify based on your liquid assets (savings, investments)

   • Income isn’t the main factor—your reserves are

   • Good for retirees, wealthy investors, or trust income recipients

4. P&L-Only Loans

   • Use a CPA-prepared Profit & Loss statement to document income

   • Fast, minimal paperwork

We’ll look at your full picture—not just a tax return—and craft a loan strategy that reflects your actual financial strength.

🧮 What You’ll Need

Different programs have different requirements, but here’s what you may need to gather:

For Bank Statement Loans:

• 12–24 months of bank statements (business or personal)

• Business license or proof of self-employment

• Letter from CPA verifying business operation

For 1099 Loans:

• 1–2 years of 1099 forms

• Proof of consistent client relationships or contracts

For Asset-Based Loans:

• Recent statements for checking, savings, retirement, or brokerage accounts

• Documentation to show assets are seasoned (not borrowed)

💡 Tip: Even if you’re not “traditional,” we can usually find a path forward—just be ready to provide clear records and answer questions about how you earn.

📊 What’s the Catch?

These alternative loans often come with:

• Slightly higher interest rates (due to increased risk to the lender)

• Higher down payment requirements (usually 10–20% minimum)

• More limited loan program choices

BUT: You get access to homeownership—and the ability to build wealth through real estate—even when the banks say no.

We believe that being self-employed or entrepreneurial should be a strength, not a setback.

🛡 Horizon’s Process: Built for Real People

1. We Listen First
   We’ll ask how you earn, what your long-term goals are, and how your income works. No judgment—just problem-solving.

2. We Match You With the Right Program
   We choose the right loan after understanding your financials—not the other way around.

3. We Simplify the Path Forward
   Clear expectations, minimal paperwork, and step-by-step guidance. We’ll prep you like a pro.

4. We Close With Confidence
   We’ve helped dozens of self-employed clients close smoothly—and we’ll do the same for you.

👨‍💻 Real Examples

Case Study 1: Contractor with Heavy Write-Offs
Marcus owned a plumbing business for 4 years. His tax returns showed only $30K in income after expenses, but his bank deposits averaged $14K/month. We used 12 months of bank statements and got him approved for a $475,000 home.

Case Study 2: Retired Couple with No W-2s
Jan and Roger had no jobs—but over $1.2 million in retirement and investment accounts. We structured an asset-based loan, proving they had enough reserves to make payments for years. They bought their dream home with confidence.

Final Thoughts

Just because your income isn’t “typical” doesn’t mean you can’t qualify. At Horizon Funding, we specialize in turning complexity into clarity.

✅ Self-employed?
✅ Business owner?
✅ Freelance, commission-based, or investor?
✅ Retired with assets but no income?

You don’t have to fit the mold—we’ll mold the loan to fit you.

Let’s talk and find your path to homeownership.