The white picket fence. The two-car garage. The four walls you don’t have to share with anyone.
Owning a home, and with it realizing an integral part of the American Dream, has long been a goal for millions.
There’s just one problem: achieving this dream means qualifying for a mortgage—a step that now increasingly feels impossible. What’s happened?
At first glance, this may seem like an error. After all, as long as you’re hardworking and financially stable, why wouldn’t you get approved?
The hard truth is that many prospective homeowners are denied not because they’re risky, but because they don’t check the traditional W-2 boxes.
In other words, although they might have funds, they lack a full-time job—a situation lenders call “unverifiable income.” But in 2025, is having a nine-to-five really the only way to prove you’re mortgage-ready?
It’s a question worth asking, which is why we’re going to explore the ways in which work has changed over the past few decades, why lending hasn’t kept up, and what lenders like Quontic are doing about it.
A Housing Market That Is Out of Reach for Many
The challenges of modern mortgage lending didn’t come out of nowhere.
In order to understand why it’s become more difficult to qualify for a mortgage, it’s helpful to first understand the larger context.
First, some history.
Seventy years ago, when America was in the midst of its post-war boom, purchasing a house was much easier. This can be measured by the ratio of home prices to median household incomes. From the 1950s through to the early 2000s, this ratio hovered around five, meaning the average house cost five times a household’s yearly income.
In fact, in many years, this ratio was even lower. In 1960, for example, the median home cost was $11,900, while the median income was $5,600, giving us a ratio of closer to two.
However, beginning in the 1980s and continuing all the way up to the present day, home prices have outpaced the growth of income. By 2023, the cost of a home had risen to over five times the median household income. This means, in nearly half of metro areas, buyers must now make more than $100,000 to afford a median-priced home.
To put all this another way, about 7 out of every 10 Americans could afford to purchase a house in 1960. In 2020, this was true for only 4 out of every 10.
Compounding this affordability crisis have been the recent effects of inflation.
After reaching a historic low of 2.65% in January 2021, mortgage interest rates have steadily risen again as the Fed continues to battle rising costs. As a result, rates for 30-year fixed mortgages now stand at close to 7%, putting even more burden on new homeowners as they make payments.
That’s even worse news for renters hoping to one day own a home.
Although the pace of rent inflation has lowered since its peak in 2022, rent prices are still up by about 36% since before 2020, making it difficult for renters to save up for down payments.
And yet, amidst all of this, millions out there are still striving to become homeowners any way they can. They’re doing this by ditching traditional jobs, which often fail to offer incomes that can lead to homeownership, and instead are taking on new forms of work.
Unfortunately, the traditional mortgage lending industry has been slow to recognize this shift, which could very well be a reason the rate of homeownership has dropped so sharply in recent years.
The Modern Workforce Doesn’t Fit the Mold
So exactly how has work changed in recent years? The numbers may surprise you.
In 2020, there were about 38 million people freelancing in some form. But by 2024, the number of freelancers had grown to over 72 million—an astounding 89% increase.
And while some of these workers are just doing freelance on the side, many others are earning significant incomes. One study found that 4.7 million of these freelance workers earned over $100,000 a year, meaning that it’s not uncommon for them to be pulling in full-time income without a W-2.
These gig workers aren’t just found in one demographic either.
In fact, there really is no such thing as a typical gig worker. While they do tend to skew younger than traditional workers, they vary in gender, race, education, and industry. You can find gig workers in transportation, e-commerce, sales, health and education, and many other sectors of the economy.
Immigrant households, in particular, tend to be attracted to gig work. This may be because many forms of this work, such as delivery drivers and taxi services, have low barriers of entry.
Gig work also favors cash-based income, while its flexibility makes it easier for families to pull in multiple incomes.
But however you measure it, one thing is true: the rise of the freelance economy (including gig work, remote work, and stacked jobs) has upset traditional work arrangements by decentralizing how many people now earn their living.
Why Inclusive Lending Matters
If you ask many lenders why they have yet to adapt to the new realities of work, you may hear a lot of talk about their unwillingness to “lower standards” or “disrupt norms.”
But assessing creditworthiness shouldn’t be about maintaining the status quo. Instead, it should be about measuring financial health as accurately and fairly as possible.
Current lending rules are great at rewarding people who can conform to the usual paper trail: full-time job, steady income, W-2s.
However, they fall well short of properly accounting for borrowers who choose a different path—even when these borrowers are earning or saving more than their more traditional peers.
This is a shame.
As we’ve previously outlined, these “different” borrowers now make up a significant portion of the economy. And with the housing market already posing a significant set of challenges, it doesn’t make much sense to further limit the pool of potential borrowers.
That’s why a more inclusive approach to lending matters so much.
By modernizing how creditworthiness is determined and embracing a wider definition of financial health, it will be possible to create more homeowners, which will lead to stronger communities, as well as greater upward mobility.
It’s far past time for the lending industry to change how they determine mortgage eligibility. They should be serving the economy that exists today, not the one from the 50s.
Self-Employed? Gig Worker? You Have Options
If you’ve read this far, chances are much of this article has resonated personally with you.
Maybe you make your living as a freelancer and have previously been denied a mortgage loan based on your financial history. Or maybe you’re part of a multi-income household and lack consistent documentation to qualify for a loan.
Whatever the case, the good news is that you’re not alone. Not only that: you also have a number of options.
Here are four options that might just appeal to you:
- Bank statement loan: Are you self-employed? Is your income healthy, but inconsistent? Then this type of loan might be a great fit. Instead of having to prove your income via pay stubs or W-2s, you can qualify simply by submitting your bank deposit history. Typically, lenders will want 12 to 24 months of statements in order to properly assess how much you earn.
- Low/No documentation loan: All kinds of non-traditional earners—freelancers, gig workers, content creators—may benefit from this option. These types of loans simplify the application process by allowing potential borrowers to apply using a variety of alternative documentation, such as bank statements and assets. However, they’re typically reserved for those with very good credit.
- Mixed-income and household-based loans: Many modern families and partners now combine their earnings rather than relying on individual incomes. If that sounds like you, then consider this loan type. By qualifying borrowers based on their combined household income, it accommodates the reality of many prospective homebuyers.
- ITIN loan: Short for Individual Taxpayer Identification Number, this type of loan gives borrowers without a Social Security number the opportunity to qualify for a mortgage. This makes it a great option for immigrants and non-U.S. citizens who work hard, pay taxes, but might not otherwise be able to get a loan.
As more lenders recognize the need for alternative loan types, they are starting to offer programs that evaluate income and financial stability differently—and more fairly. Not only are these programs fully legitimate and structured, they are steadily growing in adoption.
Consider a Lite Documentation Home Loan With Quontic
Another option that may be worth considering is Quontic’s very own Lite Documentation Home Loan.
Built for borrowers with non-traditional income streams—such as freelancers, seasonal employees, consultants, and more—this low doc home loan can provide you with a simplified, alternative means of qualifying for a mortgage.
Here’s how it works:
- Less paperwork. There’s no need to worry about filing a bunch of income documentation like extensive bank statements, W-2s, and tax returns.
- Alternative income verification. We assess each loan applicant’s full financial profile, whatever that might be.
- Fast decisions. You won’t be drawn into a lengthy process when qualifying for a loan. Instead, our simplified assessment allows us to make speedy decisions.
What’s more, as a Community Development Financial Institution (CDFI), Quontic brings a determined, mission-driven approach to opening up access to homeownership. With a national reach and an inclusive, digital-first approach that embraces the modern realities of how people earn their living, we are focused on fixing the problems of the mortgage industry.
Traditional lenders have shut people out for too long. That’s why we’re building products that bring more people in.
We’re Reimagining the Path to Homeownership
Owning a home remains a dream for millions.
But as house prices have surged and incomes have struggled to keep up, more people have found themselves unable to realize this dream.
The traditional mortgage industry hasn’t helped. By sidelining prospective borrowers who earn money through alternative means, it has put homeownership even further out of reach for many.
A change is needed. It shouldn’t matter if you are self-employed, multi-income, or rely on freelance work. You deserve a chance.
Quontic is here to help.
Whether you’re looking for advice on the non-traditional mortgage process or want to explore our inclusive lending options, we can put you on the path to homeownership you’ve been waiting for.