It’s not always an automatic denial, but it’s definitely a red flag for most underwriters.
That’s spot on. High DTI isn’t a hard stop, but it does make things trickier. I’ve seen people get creative—like picking up steady freelance gigs or part-time jobs—but lenders really want to see that extra income stick around for a while. It can feel like jumping through hoops, but consistency is key. Keep at it and document everything... sometimes persistence pays off more than you’d think.
Not always a dealbreaker, but lenders definitely get nervous when they see a high DTI. Had a client last year who tried to boost their odds by picking up rideshare gigs—looked good on paper, but the underwriter wanted six months of consistent deposits before they'd count it. It’s a hassle, honestly. If you’re going that route, make sure you’re tracking every cent and keeping pay stubs. Lenders love paperwork... probably more than anyone else.
Honestly, I get why people try to pad their income with side gigs, but I’ve seen that backfire more than once. Lenders are super strict about what counts as “real” income, and anything inconsistent just raises more questions. Sometimes it’s actually easier to focus on paying down debt or consolidating loans first, rather than scrambling to add extra streams that might not even help your approval odds in the short term. The paperwork for gig work is a headache, and if you miss a deposit or two, it can set you back months.
Not always the case, honestly. I’ve seen folks get approved with side gig income, but you’re right—it’s a paperwork maze. If you can show a solid two-year history and consistent deposits, lenders will usually count it. It’s not for everyone, though. Some people find it easier to just tackle debt first, but if you’re already doing gig work, don’t write it off as useless. Just keep those records tidy and expect a few extra hoops.
If you can show a solid two-year history and consistent deposits, lenders will usually count it.
That’s mostly true, but I’ve seen underwriters get picky even with two years of side gig income. Here’s what I’ve run into:
- Lenders want to see not just deposits, but also tax returns matching up. If you’re not reporting all your gig income, forget about it.
- Some banks still treat non-W2 income like it’s radioactive. Depends on the lender and their appetite for risk.
- High DTI isn’t always a dealbreaker, but if you’re pushing the upper limits (say, over 45%), they’ll scrutinize everything. Sometimes they’ll ask for letters explaining every deposit over $500. It gets tedious.
I’ve had buyers who got creative—paid down a credit card right before closing to drop their DTI just enough. Not saying that’s the best move, but it worked. Honestly, if you’re juggling gig work and debt, keep every scrap of paperwork. The more organized you are, the less likely you’ll get tripped up by some random underwriter question.
It’s doable, but man, it’s never as simple as the mortgage ads make it sound.
