Homebuyers

Working a Side Gig to Buy a Home? Here’s What Lenders Want to See

For many homebuyers, a paycheck from a full-time job may not be enough to afford a home.

As home prices, mortgage rates, and everyday costs continue to strain budgets, many Americans are turning to side gigs, freelance work, and app-based jobs to help save for a down payment and closing costs. But those part-time jobs don’t always help them qualify for a mortgage.

“They’re really leveraging the flexibility and accessibility of jobs like Uber, Lyft, grocery delivery, and personal shopping,” said Mosi Gatling, a Las Vegas-based loan officer and senior vice president of strategic growth and expansion at New American Funding. “It’s not just extra money; it’s how they’re reaching homeownership and financial goals they couldn’t hit on a single W-2 income alone.”

The trend is becoming increasingly common.

Nearly 30% of Generation Z and roughly one-quarter of millennials have a part- or full-time side job in addition to their primary role, according to Deloitte’s 2026 Gen Z and Millennial Survey. Cost of living remained the top concern for both generations.

Meanwhile, the share of Americans working multiple jobs was 5.2% in April 2026, according to the Bureau of Labor Statistics.

That extra income may help buyers save for a home. But whether lenders will count that extra income when someone applies for a mortgage depends.

Can side hustle income count toward a mortgage?

When it comes to qualifying for a home loan, lenders typically want to see at least two years of side gig or freelance income before counting it toward a mortgage application.

If that work classifies someone as self-employed or an independent contractor, as many app-based jobs do, they will also generally need two years of filed tax returns documenting those earnings.

Lenders also want to ensure that income is steady and likely to continue. If side hustle earnings vary significantly from year to year or appear temporary, it may not fully count toward getting a mortgage.

Similar requirements apply across loan types. For example, borrowers seeking U.S. Department of Veterans Affairs (VA) loan approval with side hustle income likely will still need to show the income is stable and ongoing.

How tax write-offs can affect mortgage qualification

Many freelancers and gig workers take deductions for mileage, equipment, a home office, and other business expenses to reduce their taxable income.

While that can lower a tax bill, it can also reduce the income lenders are willing to use when qualifying a borrower for a mortgage. Lenders generally calculate qualifying income using net income reported on tax returns rather than gross earnings, according to Fannie Mae’s Selling Guide.

In practical terms, larger write-offs may lower what you owe the IRS, but it also means you have less income that counts toward qualifying for a mortgage. 

What to do if you don’t have two years of part-time income

If you have not yet reached the two-year mark for freelance or side income, experts say preparation and planning still matter.

“If you’re not quite there yet in terms of timeline or documentation, don’t be discouraged,” Gatling said.

“Understanding what is needed and how it’s counted is really a huge win, so you can plan accordingly for your timing of being able to get into a home,” she said. “You can map out what your savings will look like over that period while you’re preparing, so you can make a successful transition into being able to qualify then purchase.”

Borrowers hoping to eventually use side hustle income for a mortgage should keep detailed income records, file taxes consistently, maintain steady deposits, and think carefully about significant tax write-offs in the years leading up to a home purchase.

Can freelancers get a mortgage? Non-QM loans may help

The guidance above mostly applies to borrowers with traditional W-2 jobs who earn extra income on the side. But what about buyers whose income comes entirely from freelance work, self-employment, or gig platforms?

That’s where Non-Qualified Mortgages, often called non-QM loans, come in.

Some non-QM loans allow borrowers to qualify using alternative documentation instead of two years of tax returns and W-2s. Depending on the loan program, that may include 12 months of bank statements, one year of tax returns instead of two, or 1099 income documentation.

However, these loans often come with trade-offs. Borrowers may need a larger down payment, a higher credit score, and could face higher interest rates. Depending on the lender and loan program, some buyers also may not be able to combine non-QM loans with down payment assistance programs.

Still, for self-employed borrowers and freelancers, these loans can provide another path to homeownership.

“Knowing upfront what you’re working with so you can plan accordingly, that’s the real power,” said Gatling.

Mosi Gatling NMLS # 557166