I applied for a mortgage. Credit score 780. 20% down payment ready. The loan officer called me, awkward and quiet. “We found your… online presence. The underwriter considers your income ‘unstable’ and ‘reputational risk.’ Denied.” I faced the same issue with a luxury apartment complex. I wanted to sue for discrimination.
Key Takeaways
- “Occupation” is Not Protected: In most of the US, it is perfectly legal to discriminate against someone because they are a sex worker. It is not a protected class like Race, Religion, or Sex.
- Fair Housing Act Nuance: You can only sue if you can prove they discriminated based on gender or sex (e.g., they rent to male creators but not female creators), which is hard to prove.
- Prepaid Legal is Key: A lawyer can sometimes argue “Source of Income” discrimination in states that have those specific protections (like NY or CA).
- The “W-2” Strategy: The best insurance against this is an S-Corp structure where you pay yourself a W-2 salary. Lenders see “W-2 Employee of Media LLC” and stop asking questions.
The “Why” (The Trap): The “Moral Character” Clause
Banks and landlords have internal risk guidelines.
For loans, they cite “unstable income” (even if you made $200k for 3 years).
For housing, they cite “criminal activity” clauses (conflating legal SW with illegal prostitution).
Since insurance (Employment Practices Liability) covers employers from being sued, there is no insurance product that covers you for being denied a service. You are the victim, not the insured.
The Investigation: “I Called Them”
I tried to find a way to fight back.
1. HUD / Fair Housing Council
- The Advice: “Unless you can prove they denied you because you are a woman (Sex Discrimination), we can’t help. SW is not a protected class.”
2. Tenant Unions / Legal Aid
- The Strategy: In states like California, “Arbitrary Discrimination” is illegal under the Unruh Act.
- The Cost: A lawyer can write a letter citing these specific state laws.
- My Analysis: It works 50% of the time. Sometimes the landlord gets scared; sometimes they double down.
3. Mortgage Brokers for “Non-QM” Loans
- The Solution: Not insurance, but a product. “Non-Qualified Mortgages” (Non-QM) are designed for entrepreneurs.
- The Catch: Higher interest rates (1-2% higher). But they look at bank statements (cash flow), not the “source” or job title.
Comparison Table: Fighting Discrimination
| Strategy | Cost | Success Rate | Note |
| Fair Housing Complaint | Free | Low | Only works for protected classes |
| Legal Threat (State Law) | $500 | Medium | Depends on state (CA/NY best) |
| W-2 Structure (S-Corp) | ~$1k/yr (Payroll) | High | Stops the question before it’s asked |
| Non-QM Loan | Higher Interest | High | Designed for “Gig” workers |
Step-by-Step Action Plan
- Form an S-Corp: Pay yourself a salary. Generate pay stubs. When the bank asks for proof of income, give them the W-2 from “Blue Sky Media Inc.” Do not give them your OnlyFans statements unless forced.
- Check State Laws: Google “[Your State] Source of Income Discrimination laws.” If your state protects source of income, print that statute and attach it to your application.
- Use a Broker, Not a Bank: Do not walk into Chase or Wells Fargo. Use a mortgage broker who specializes in self-employed borrowers. They know which lenders are SW-friendly (or at least indifferent).
- Offer a Larger Deposit: For rentals, offering 3-6 months rent upfront often overrides the landlord’s “moral” concerns. Money talks.
FAQ
Q: Can I lie on the application?
A: Do not lie about numbers. That is fraud. But being vague about job duties (“Social Media Consultant”) is generally acceptable marketing puffery, as long as the income is real and legal.
Q: Is there insurance for “Loss of Housing”?
A: No. There is insurance for “Loss of Use” due to fire, but not due to eviction or denial.
[IMAGE: A diagram showing the S-Corp flow: OnlyFans -> Business Bank -> Payroll Service -> Personal Bank (W-2 Salary).]