Can I Use More Than One Income Source to Qualify for a Mortgage?

In today’s gig economy, it’s a question mortgage brokers hear all the time: “Can I use more than one income source to qualify for a mortgage?” The answer is a resounding yes. In fact, if whether you're a W2 employee, stock trader or crypto investor, using multiple sources of income can significantly boost your homebuying power. In some ways, it's no different than counting multiple sources of income from a married couple buying a home. 

Lenders can blend W-2 salary, bonuses, self-employment earnings, investment payouts, and even stock portfolio and bitcoin and etherum holdings to paint a full picture of your finances and qualify you for the mortgage you want. The key is knowing how lenders calculate each income type and what documentation you’ll need. Here’s how it works.

Why Multiple Income Streams Matter in Today’s Mortgage Market

Not everyone earns a simple paycheck anymore. Perhaps you consult on the side, earn dividends from stocks, or hold a hefty crypto wallet. Many homebuyers today have more than one income source, and smart lenders recognize this. More income streams mean higher total qualifying income, which in turn means you can afford a larger mortgage. Lenders look at your combined monthly income when determining how much you can borrow, so every extra dollar counted helps increase your loan approval amount. In short, using multiple income sources can be the difference between settling for a condo and qualifying for your dream home.

However, lenders will only count income if it meets certain standards. Stability and consistency are paramount. If you show steady earnings from various sources – say a salaried job plus consistent freelance contracts, plus regular investment income – a lender can add all that up to approve you for a bigger loan. It’s all about packaging all of your income streams into one strong application. So yes, you can absolutely mix and match income types to qualify. Now, let’s break down the common income sources and how mortgage lenders handle each one.

Income Sources Beyond the W-2 (And How Lenders Count Them)

Modern borrowers might collect income from all over: a day job, a side gig (1099 income), stock portfolios, rental properties, retirement accounts, crypto investments, you name it. Here’s a look at the major income types and what lenders want to see for each:

W-2 Salary and Bonus Income

Traditional Employment Income (W-2): If you have a salaried job or hourly pay, this is the straightforward part. Lenders will look at your pay stubs and W-2 forms to get your base income. As long as your job is stable and likely to continue, your gross monthly salary will count in full. Easy.

Bonuses, Overtime, and Commissions: Things get interesting if a big chunk of your pay comes from bonuses, overtime, or sales commissions. Lenders will count these variable incomes – but only if you have a track record. Generally, you need to show at least 1-2 years of history receiving that extra pay, and it should be relatively consistent or rising. For example, if you earned $30,000 in bonuses last year and $33,000 this year, a lender might average that to count about $2,625 per month as qualifying income. If your bonus is guaranteed by your employer (lucky you!), some lenders will even use just a 12-month average. The key is proving the bonus or overtime is likely to continue.

Be prepared to provide documentation: W-2s showing past bonus amounts, year-to-date pay stubs, and potentially a Verification of Employment (VOE) letter from HR explaining your bonus structure. How that letter is worded can be crucial. (Pro tip: If your contract says “bonus at employer’s discretion,” underwriters may get nervous. A letter confirming a consistent history of bonuses can ease their minds.) If your bonus income declined significantly – say, more than 10% drop year-over-year – expect to explain why. Lenders might take a conservative approach and use the lower year’s amount or even exclude it if the trend isn’t your friend. But if your variable pay has been steady (or climbing) and you can show it’s a regular part of your compensation, a good lender will count it.

Bottom line: Bonus and commission income can boost your mortgage qualification, but you’ll need that paper trail. Two years of consistent bonuses with supporting docs is the golden ticket. In other words, predictability and proof are everything.

Self-Employment and 1099 Income

If you’re self-employed, a freelancer, or a gig worker receiving 1099 income, lenders will take a close look at your tax returns. Unlike a W-2 job where your income is whatever your employer says it is, self-employed income can fluctuate and be reduced by business write-offs. Typically, lenders ask for two years of personal and business tax returns or bank statements to average your self-employment income. They’ll look at your net profit (after expenses) or possibly your gross receipts if you’re a contractor, and sometimes add back certain deductions like depreciation. The key again is consistency.

Documentation for self-employed folks can be heavy unless you opt for a bank statement mortgage. You’ll need full tax returns (all schedules), possibly a year-to-date profit and loss statement, 1099 forms if applicable, and business bank statements. Some specialty loan programs (like bank statement loans) allow you to qualify using bank deposits instead of tax returns, which is helpful if you maximize deductions and your tax returns don’t reflect your true cash flow.

The overarching rule for side hustles and self-employment is the two-year rule. An applicant should generally have a two-year history of earning a second income for it to qualify. There are exceptions (for instance, 12 months might suffice if the income is strong and likely to continue), but you can’t typically start a brand new gig today and use that money for a mortgage next month.

Investment Income (Stocks, Dividends, and Interest)

Got money working for you in the market? Income from investments can count too. There are two ways this typically shows up: dividend and interest income, or asset depletion (drawing down assets). We’ll cover asset depletion in the next section, so here let’s focus on regular investment income.

If you have a brokerage account or trust that pays you dividends or interest regularly, lenders will treat it similarly to other income: they want a history of receipts and some assurance it will keep coming. Usually, two years of tax returns will show the interest and dividends you received each year. If it’s a substantial amount and relatively stable, that average can be used as qualifying income.

Restricted Stock Units (RSUs): RSUs deserve a special mention. These are common in tech and high-growth industries – essentially part of your compensation is paid in company stock. Lenders will count RSU income, but the bar is a bit high. Typically, the RSUs must be vested and you need a two-year history of receiving them. The lender might take a 52-week average of the stock price to account for volatility when valuing your RSU income. Crucially, you also have to show that the RSU grants will continue in the future at a similar level for at least 3 years.

Capital Gains: Regular capital gains (if you’re one of those people who trades stocks for a living, or you routinely buy and sell investment properties) can sometimes count, but you usually need a multi-year history of it on your tax returns and an expectation of continuance. For most folks, one-off gains won’t count.

Asset Depletion: Turning Assets into “Income”

If you have significant assets (think seven figures or more in liquid net worth), you might not need much “income” on paper at all. Asset depletion loans allow you to qualify using your assets instead of traditional income. Lenders take your liquid asset balance (cash, stocks, bonds, etc.), apply a formula, and convert it into a hypothetical monthly income stream for qualification purposes. It’s like an annuity: “if we slowly consumed your assets over X years, how much could you pay yourself each month?” That calculated amount is your qualifying income.

Different lenders use different formulas for asset depletion. The most favorable programs (especially jumbo and high-net-worth programs) use shorter terms like 60 months (5 years), which dramatically increases the monthly income calculation. For instance, one lender might take $5 million in assets ÷ 60 = ~$83,300/month of income. That’s a huge difference in what home price you could afford.

Asset depletion is ideal for retirees, high-net-worth individuals, or anyone with big savings but little W-2 income. It lets your net worth do the talking. To qualify, you typically need a substantial amount in eligible assets – often at least $1 million in liquid assets. Lenders will want to see account statements to verify your holdings, and they may only count a portion of certain assets. For example, retirement accounts might be counted at 70% of value if you’re under age 59½. Stock portfolios are often counted at around 70% of value to account for market fluctuation, while crypto assets are typically given a 50% haircut due to volatility.

The beauty of asset depletion is that no actual withdrawal or liquidation is needed. It’s all on paper. You can qualify without touching your portfolio, which means no capital gains tax triggered by selling stocks or crypto, and you get to keep your investments growing in the market. This method has become a cornerstone for wealthy borrowers. And yes, asset depletion can be combined with other income sources. Many lenders will let you blend asset depletion income with other income like Social Security, pension, rental income, or even part-time job earnings to strengthen your debt-to-income ratio.

Crypto Assets and Mortgage Qualification

Now let’s talk about cryptocurrency. It’s a relatively new asset class, and only cutting-edge lenders know how to properly incorporate it into mortgage qualification. With the right programs, you can truly qualify based on your crypto wealth without liquidating or locking it up—and that’s exactly where LendFriend comes in. A handful of lenders now offer crypto-backed mortgage options that treat crypto assets similarly to other assets in asset depletion calculations.

Traditionally, Fannie Mae and Freddie Mac have been slow to embrace crypto. Even as of mid-2025, they were only considering allowing crypto as reserves, not as qualifying income. In practical terms, that means most banks won’t let you say “I have $5 million in Bitcoin, count that as income.” They’d just acknowledge it as a backup asset. But specialty programs – like the ones LendFriend offers – cut through that red tape. Crypto-backed mortgages use the value of your digital assets to help you qualify without requiring you to sell them or take a loan against them. It’s not about actually paying your mortgage with Bitcoin; it’s about using your wallet balance as evidence of ability to pay.

For crypto to count, you will need to document your holdings thoroughly. You really want to have it in a trusted account like Coinbase or a secure hard wallet. Expect to provide recent statements or verification that clearly show the account is in your name and the funds are yours. Most lenders will apply a conservative calculation – often taking about a 50% haircut on the total crypto balance and then dividing that figure by 84 months – to arrive at a qualifying monthly income. This approach helps account for volatility while still letting your digital assets strengthen your mortgage application. As with other assets, if you’re using crypto for an asset-depletion calculation, you’ll also be required to keep some reserves beyond the portion used for qualifying.

The bottom line on crypto: With the right lender, your Bitcoin or Ethereum stash can join your income party. You can qualify for a mortgage based on both your traditional income sources and your crypto wealth, legally and effectively.