Posted on April 24th, 2025

For many aspiring homeowners or real estate investors, getting approved for a mortgage can feel like a dead end — especially if you're self-employed, a freelancer, or someone whose income doesn’t fit neatly into a W-2. Traditional banks tend to play by rigid rules, which often leaves people without standard pay stubs or tax documentation frustrated and out of options.

But here’s the good news: there are real, flexible solutions that allow you to qualify for a mortgage — even without traditional income. At Plan B Funding, we’ve been helping clients like you for over 40 years, and we know how to get deals done when others can’t.

In this post, we’ll explore several alternative income documentation options, how they work, and what you need to know to get started.

Understanding Traditional vs. Non-Traditional Income

Most big-name lenders rely on conventional underwriting, which means they look for two years of W-2s, pay stubs, and clean tax returns. But in today’s economy, more and more people earn income in ways that don’t fit that formula. This includes:

• Business owners and sole proprietors
• Freelancers and independent contractors
• Investors
• Gig economy workers
• Retirees with large savings
• Individuals with seasonal or irregular income

If you fall into one of these categories, don’t worry — you’re not alone, and you’re not out of luck.

Alternative Ways to Prove Income

At Plan B Funding, we understand that income can come from many sources. That’s why we offer a variety of ways to qualify for a mortgage that go beyond the traditional paperwork. Here are a few:

• Bank Statement Loans

Instead of W-2s or tax returns, we review 12 months of personal or business bank statements to verify income. We analyze your monthly deposits to determine a qualifying income figure. This option is ideal for self-employed borrowers or business owners who reinvest much of their profit.

• Profit and Loss (P&L) Statements

If your income fluctuates or your tax filings don’t tell the full story, a P&L statement prepared and signed by a tax professional can serve as proof of your business’s income and health. This is another great route for entrepreneurs and contractors.

• Asset Depletion

If you have significant liquid assets — like cash, stocks, retirement funds, or other investments — you may qualify based on an asset depletion formula. This method calculates how long your current assets could sustain mortgage payments, and uses that number as your income source.

• W-2s with Recent Pay Stubs

If you’re employed but have recently changed jobs, or don’t have full tax returns yet, you may still qualify using W-2s and two months of pay stubs. This is often an option for those early in a new role or in transitional employment.

• Other Acceptable Sources

We also consider other options, including rental income, retirement distributions, alimony, or foreign income. Every client’s situation is unique, and we’re committed to finding a way that works for you.

Why Traditional Lenders Often Say No

Big banks operate under stricter guidelines and have little room for flexibility. They rely heavily on automated systems and check-the-box criteria that simply don’t work for people with complex or non-traditional financial profiles. If you don’t meet their mold, they often won’t take the time to look deeper.

That’s where we come in.

At Plan B Funding, we specialize in second looks. We manually review applications and take a holistic view of your financial health — not just what’s on the surface.

Real Clients, Real Results

Over the past four decades, we’ve worked with thousands of clients who were told “no” by traditional lenders — and helped turn that “no” into a “yes.” From self-employed creatives buying their first home to seasoned investors growing their real estate portfolios, we’ve seen it all, and we’ve made it happen.

One recent example? A client who ran a successful online business was denied by multiple lenders due to fluctuating income and no W-2. Using 12 months of bank statements and a signed P&L, we helped them close on their dream home in just under 30 days.

That’s what Plan B Funding is all about — finding a path forward when the conventional road is blocked.

What You’ll Need to Get Started

While every borrower’s documentation may vary, here’s a general list of what to prepare:

• ID and basic personal information
• Bank statements (personal or business)
• Signed profit & loss statement (if applicable)
• Asset documentation (if using asset depletion)
• Credit history and score
• Property details (if already selected)

Our team will walk you through exactly what’s needed and help you gather it step-by-step. No stress, no confusion — just expert guidance.

The Plan B Funding Difference

What makes us different isn’t just what we offer — it’s how we work.

We’re not here to push paperwork and hope for the best. We’re here to listen, to understand your story, and to build a solution around your reality. You’ll always get personalized advice, honest feedback, and a lending partner who fights for your success.

If you're tired of getting turned down for doing things differently — we’re the team for you.

Ready to Make It Happen?

Your financial journey is unique — and your mortgage solution should be too. At Plan B Funding, we’re ready to help you qualify, even when the big banks won’t.

Let’s build a plan that works.
Reach out today for a free consultation — and discover what 40+ years of lending expertise can do for you.