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Securing a $2M mortgage without traditional W-2 income is entirely possible if you have the right financial strategy. Whether you’re a self-employed entrepreneur, investor, or high-net-worth individual with unconventional income sources, there are several mortgage products designed to help you qualify. This guide covers the most practical options, including DSCR loans, bank statement loans, and asset depletion programs, which can allow you to access substantial financing without the need for pay stubs or tax returns.
Why You Might Not Have W-2 Income
There are many reasons why someone might not have W-2 income, including:
- Self-employment or freelance work
- Real estate investing
- High net worth individuals who live off investments
- Small business owners
- Retirees or those with significant asset portfolios
Traditional mortgage lenders often rely on W-2s to verify income, but these methods don’t always reflect the true financial picture for many high-earning individuals. That’s where alternative mortgage products come in.
Top Mortgage Options Without W-2 Income
1. DSCR (Debt Service Coverage Ratio) Loans
DSCR loans are a powerful option for real estate investors. These loans focus on the cash flow generated by the property itself rather than the borrower’s personal income. Here’s why they’re a great fit:
- No W-2s, pay stubs, or tax returns required
- Qualification based on property income (typically a DSCR of 1.0 or higher)
- Suitable for LLCs and experienced investors
To learn more about this option, check out our comprehensive DSCR Loan guide.
2. Bank Statement Loans
For self-employed individuals, bank statement loans use 12-24 months of bank deposits as proof of income, rather than tax returns or W-2s. This approach captures the true cash flow of your business and allows for significant write-offs without hurting your qualification chances.
- Ideal for self-employed borrowers
- Allows for flexible income verification
- Typically available up to $5 million
Explore our Bank Statement Loan guide to see if this approach fits your needs.
3. Asset-Based Loans (Asset Depletion)
These loans are designed for high-net-worth borrowers who prefer to qualify based on liquid assets rather than earned income. Lenders calculate your qualifying income by dividing your total assets over a set period (e.g., 10 years).
- No employment or income verification required
- Perfect for retirees or those living off investments
- High loan amounts often available
Key Considerations When Applying
- Credit Score: Most lenders require a minimum credit score of 620-680, but higher scores can improve your rates and terms.
- Down Payment: Expect to put down at least 20-30% to qualify for a $2M loan without traditional income verification.
- Property Type: These loans typically apply to investment properties, second homes, or luxury primary residences.
- Reserves: Many lenders require 6-12 months of reserves to cover mortgage payments.
Frequently Asked Questions (FAQs)
Can I get a $2M mortgage if I have inconsistent income?
Yes. Options like bank statement and DSCR loans are designed for borrowers with inconsistent or fluctuating income streams.
Are DSCR loans available for short-term rentals like Airbnb?
Yes. Many DSCR lenders allow short-term rental income to qualify, but you may need to provide detailed cash flow records.
Do these loans have higher interest rates?
Generally, yes. Non-QM loans like DSCR and bank statement loans often have higher rates than traditional mortgages, reflecting the additional risk to the lender.
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Take the Next Step
Ready to explore your mortgage options without W-2 income? Use our Loan Comparison Calculator to find the right product for your needs today. If you have questions, connect with a mortgage expert who can guide you through the process.
Get Expert Financing
- Matched with investor-friendly lenders
- Fast pre-approvals-no W2s required
- Financing options fro rentals, BRRRR, STRs
- Scale your portfolio with confidence
Our advice is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.
