How Freelance Songwriters Get the Best Mortgages

How Mortgage Brokers Assess Freelance Songwriters’ Income in 2025

Freelance songwriting can be an incredibly fulfilling and lucrative career. Every lyric you craft can move listeners and earn you long-term royalties. But what happens when you want to put down roots and buy a house? Applying for a mortgage as a self-employed lyricist or composer is no easy feat — especially when your income is anything but regular.

In this article, we’ll take a deep dive into how mortgage brokers evaluate freelance songwriters’ income in 2025. You’ll discover exactly what lenders look for, what kinds of hurdles to expect, and proven strategies you can use to improve your chances of securing competitive rates. Whether you’re already earning substantial royalties or are just starting to grow your songwriting income, these actionable insights will help you navigate the process with confidence.

Why Freelance Songwriters Face More Scrutiny from Brokers

Traditional borrowers (those with salaried W-2 jobs) offer lenders stable, verifiable income — the kind they can plan for. But as a freelance songwriter, your income can fluctuate wildly. One quarter you might earn a large sync licensing payout for a TV commercial, the next quarter you may receive only a small trickle of streaming royalties. This “feast-or-famine” cycle raises serious concerns for lenders.

Brokers view income consistency as a big predictor of repayment ability. Even if you earn $100,000 annually as a songwriter, they’ll want to see how often and when you receive those checks. Big spikes followed by dry spells make them nervous — especially if they average your income over the past two years. Understanding this mindset is crucial before you approach any lender.

Proof of Income Documents Brokers Will Request

When assessing self-employed borrowers like songwriters, brokers typically want to see a combination of the following:

Tax returns for the past 2-3 years: Schedule C and any 1099s showing your self-employed income. Brokers will take the average of your last two years’ earnings, so consistency matters.
Profit and Loss statements: If you keep a ledger or use accounting software like QuickBooks, brokers may appreciate a P&L summarizing your gross income and expenses.
Bank statements for the past 12-24 months: Lenders will want to see your deposits and cash flow. Songwriters who use separate business accounts tend to look more organized.
Royalty statements from PROs: Statements from BMI, ASCAP, SESAC, or other PROs prove that you receive regular royalties. The more stable, the better.
Signed contracts and commission agreements: Letters from publishers, record labels, or companies you work with can help demonstrate ongoing or future income.

Pro tip: Keep all of this organized well in advance. A well-organized folder with clear, up-to-date records will make a powerful impression on your broker.

The Debt-to-Income Ratio (DTI): What Songwriters Must Know

When you apply for a mortgage, your Debt-to-Income (DTI) ratio will be carefully scrutinized. This is one of the most important figures brokers look at. Essentially, DTI is calculated as:

Total Monthly Debt Payments ÷ Gross Monthly Income = DTI%

For self-employed songwriters, brokers will usually take your average income over the past two years. If you earned $120,000 one year and $60,000 the next, that average ($90,000 per year) will be divided by 12 ($7,500 per month) to estimate your gross income.

Then they’ll look at your existing debt payments — credit cards, car loans, existing mortgages, student loans — to determine what proportion of your monthly income these debts consume. Many lenders prefer a DTI of 43% or lower. That means all your debt payments, including the new mortgage, must not exceed 43% of that average monthly income.

This is why lowering your debt before you apply — and avoiding new loans — is such a powerful way to improve your mortgage eligibility.

Credit Score: The Other Big Factor

In addition to DTI, most brokers will pay close attention to your credit score. Even if you earn plenty as a songwriter, a poor credit history could sabotage your loan. Aim for a FICO score of at least 680 — ideally above 720 — to qualify for the most competitive rates.

Credit score improvements can take time, so if you plan to buy a house in the next year or two, check your credit report right away. Pay down outstanding balances, correct errors, and establish a record of on-time payments. Every bit helps.

Why Songwriters’ Income is Seen as “Riskier” — and How to Clarify It

Mortgage underwriters may worry that your songwriting income could dry up at any time — especially if you work freelance and don’t have a long-term publishing deal. Here are a few ways to ease their concern:

1. Demonstrate a Consistent Royalty Stream

If you have PRO income that comes every quarter, highlight that. Show the last 2-3 years of statements to establish a pattern of recurring income.

2. Get Letters from Publishers or Labels

Request letters from any companies you work with regularly — they can vouch that they intend to continue working with you. Even if they’re not contracts per se, brokers appreciate knowing you have ongoing gigs.

3. Diversify Your Revenue Streams

Do you also license lyrics? Sell co-writing services? Teach workshops? The more diversified your income is, the more stable it looks. Brokers will appreciate seeing multiple income sources that collectively add up to a stable total.

Reducing Taxable Income? Careful — Brokers Look at Net Earnings

As a self-employed songwriter, it’s tempting to deduct every possible business expense — from your home studio to travel for networking. But remember: brokers qualify you based on your net income after expenses. Writing off too much can make you appear less solvent on paper.

Some songwriters plan their taxes strategically for a few years leading up to buying a home — taking fewer deductions to show a higher income. Yes, you’ll pay more tax those years, but it can pay off with a much larger mortgage approval. Consider working with a tax advisor who understands entertainment income and mortgage underwriting guidelines. Check resources like the Small Business Administration (SBA) for financial guidance tailored to freelancers.

Saving Up a Large Emergency Buffer

Brokers don’t just look at income — they want to see savings as well. Liquid savings give lenders confidence you can make payments even if income slows temporarily. Aim for at least 6-12 months of expenses in savings before you apply.

This can also help with your DTI, because larger down payments can reduce the size of your loan — lowering your monthly mortgage payment. Consider putting those big royalty checks into savings rather than spending them all. Future you will thank you when it’s time to buy a home.

Consider Specialized Mortgage Products

Traditional loans (Conventional, FHA, VA) may require strict income verification. But in 2025, there are more options for self-employed borrowers like songwriters:

Bank Statement Loans

With a bank statement loan, lenders look at your business or personal bank deposits over the last 12-24 months — instead of tax returns — to qualify you. This can help if you minimize taxable income.

Non-QM Loans (Non-Qualified Mortgages)

Non-QM lenders cater to non-traditional borrowers and use alternative criteria like assets and bank deposits. The tradeoff is usually a slightly higher interest rate and fees — but for a songwriter who’s earning well and can show cash flow, it can be a smart option.

Asset-Based Loans

Some lenders allow you to use your savings, investments, or even royalties projected into the future as qualifying assets. If you can show substantial assets, you may qualify without proving traditional income.

Don’t Forget About Life and Disability Insurance

When you buy a home, you also want to protect yourself and your family in case you can’t work. Life insurance, especially for self-employed songwriters, can help cover the mortgage if anything happens to you. Disability insurance can also replace income during an illness or injury.

Check out our life insurance guide for lyricists to ensure you have the right policies to protect your home and income.

Examples: How Songwriters Have Successfully Applied for Mortgages

Example 1: Sam the Indie Songwriter

Sam earns $60,000 one year and $70,000 the next, mostly from streaming and royalties. Sam cleaned up their credit (730 score), put 20% down, kept bank statements and tax returns organized, and worked with a lender specializing in self-employed clients. Even with fluctuating income, Sam secured a competitive 30-year fixed-rate mortgage.

Example 2: Aisha the Sync Licensing Queen

Aisha earns most of her income by licensing her lyrics to ads and TV shows. Every time a commercial with her song airs, she gets a check. Aisha set up a business account to make deposits clearer, kept a simple P&L showing her income and expenses, and had her publisher write a letter of intent. Brokers averaged two years of income and approved her mortgage smoothly.

Preparing Early Makes the Difference

Many songwriters wait until they want to buy a home before they get their finances in order. But the most successful do it 1-2 years in advance. By that time you can:

Pay down debts and improve DTI.
Organize tax returns and financial statements.
Deposit royalties into a single account to establish consistent income.
Strengthen your credit score by paying bills on time and reducing credit utilization.

That way, by the time you meet a broker, you look like an ideal client. Consider making an appointment with a mortgage broker early — even before you plan to buy — so you can understand their requirements and make improvements over time.

Turning Lyrics into Homeownership

Freelance songwriters face unique hurdles when applying for a mortgage. Irregular income, fluctuating royalties, tax strategies that reduce your net income — all these can make brokers hesitant. But none of this is impossible to overcome.

The most important steps? Be proactive. Gather all your income proofs, improve your DTI and credit score, show stable savings, and work with brokers who understand creative professionals. Consider alternative mortgage products like bank statement loans if traditional lenders say no.

With careful preparation and a clear financial story to tell, you can lock in a great mortgage rate — and focus your energy on what you do best: writing lyrics that matter.