Buying a home is an exciting milestone in life However, the process of getting a mortgage can be daunting, especially if you have an unconventional income situation As a self-employed individual or someone with variable income, providing traditional income documentation like tax returns and paystubs is tricky. Thankfully, you still have options to finance your home. Let’s explore how you can get a home loan without submitting your tax returns.
No-income verification loans, also called no-doc or bank statement loans, are mortgages that don’t require tax returns or pay stubs to prove your income. Instead, the lender verifies your ability to repay through other documentation like bank statements.
These loans used to be quite risky before the 2008 housing crisis, but lenders have since tightened their requirements. Legitimate no-doc loans today provide a viable option for borrowers with unique income situations.
No-doc loans work well for certain borrowers such as
No-doc loans provide more flexible options if you fall into one of these categories.
While named “no-doc,” these loans do require you to provide some documentation. Here are some common ways lenders evaluate your ability to repay:
Reputable lenders complete due diligence to confirm you can repay the mortgage. They want to avoid foreclosures just as much as you do.
No-doc loans have unique advantages:
Pros
Cons
While not ideal for every buyer, no-doc loans fill an important niche.
No-income verification loans differ from standard mortgage options:
| Loan Type | Income Verification | Down Payment | Credit Score | Interest Rates |
|---|---|---|---|---|
| No-Doc | Bank statements | 20-30% | 700+ | Higher |
| FHA | Tax returns | 3.5% | 580+ | Lower |
| Conventional | Paystubs & W-2s | 3-20% | 620+ | Lower |
No-doc loans require more upfront cash and excellent credit to offset the higher risk from minimal income verification. Government-backed FHA and conventional loans are more flexible overall.
Follow these tips to boost your chances of no-doc loan approval:
With smart preparation, you can show lenders you deserve a no-doc loan.
Here is an overview of the no-tax return mortgage process:
The process is straightforward when you prepare upfront.
Many excellent lenders offer no-tax return mortgages. Here are some top picks:
Shop multiple lenders to find the best fit for your scenario.
Interest rates fluctuate daily based on market conditions. No-doc loans typically have higher rates than conventional mortgages. Here are sample rates as of today:
| Loan Type | Interest Rate | APR | Monthly Payment |
|---|---|---|---|
| 30-Year Fixed | 6.500% | 6.690% | $1,043 |
| 15-Year Fixed | 5.875% | 6.123% | $1,349 |
| 5/1 ARM | 5.125% | 5.386% | $843 |
*Based on a $300,000 loan with 20% down payment. Rates for illustration only. Verify current rates with lenders.
Compare options to see if the higher cost of a no-doc loan still fits your budget.
Getting a home loan without tax returns is possible through lenders offering no-doc mortgages. While requirements are stricter than standard loans, these products open homeownership to more buyers. Just be sure to have a large down payment, stellar credit, and consistent assets or income streams that can be verified with documents other than tax returns. If you fall into this category, no-income verification loans can make your dream of homeownership a reality!
Borrowers are typically self-employed – The no tax return lender will need to verify this either with a business listing or a business license, a letter from your accountant, your website, etc. They may require one or more of these to prove that you are in business. 1099 borrowers may also qualify.
Down Payment – Some no tax return mortgage lenders may ask for a 10% down payment, but it all depends upon your unique scenario. In most instances, the down payment may be higher. Other factors will impact your down payment such as credit score, assets, and more.
Credit Scores – There are no specific credit score requirements, but your credit score will play a major role in what your down payment and interest rate will be. Let us help you to figure all of this out without having to run your credit.
No Tax Return Requirements – Most of our lenders will ask for your last 12-24 months’ bank statements. The bank statements will be used as income verification. They will use the average monthly deposits and will treat them as income. They typically use 100% of the deposits from your personal bank accounts and a portion of your business accounts.
Other Assets – It is important to list as many assets as possible to help with the approval of your mortgage application. Underwriters always look at compensating factors and assets is one of them.
Property Types – Single family up to 4 units, second homes and investment properties.
Pros
Cons
Contact us by completing our form to the right or at the bottom and we will call to answer all of your questions.
Can you get approved for a home loan without tax returns?
The majority of mortgage lenders require you to provide one to two years of tax returns. However, there are a small handful of lenders who may be willing to process a loan without seeing your tax returns .
Can you get a mortgage if you don’t file taxes?
If you have unfiled taxes for the past year or two years, you can still get a mortgage. FHA loans for example do not require tax returns if you have W2s, good credit and a low DTI. If you are self employed, you can use just bank statements to qualify if you have not filed your taxes.
Do you need to show tax returns to get a loan?
That depends on what your financial situation is. If you are a wage-earner who receives a W-2, your lender shouldn’t require a transcript. If you are self-employed or have rental or dividend income, you’ll have to provide tax returns to document your income —and the lender will get a tax transcript.
What mortgage does not require proof of income?
A no-doc mortgage — also referred to as a no-income verification mortgage — does not require a lender to verify how much you earn with pay stubs and W-2s. These types of loans are also sometimes called NINJA mortgages, which stands for no income, no job or assets.
Can I get a mortgage without a tax return?
The exact rate you’ll receive usually depends on the loan type, down payment and credit rating. A mortgage without tax returns isn’t right for everyone, depending on your financial situation. You may end up with a higher interest rate, which will increase your monthly payments. Some non-QM loans start with interest-only payments.
Why can’t I get a home loan if my income is low?
You want to purchase a home but can’t get approved for a traditional mortgage due to issues with your tax returns. This isn’t uncommon for individuals with lower gross incomes due to tax write-offs. Unfortunately, many lenders use this income figure when deciding how much of a home loan you qualify for, if any, or if your gross income is too low.
Which mortgage lender does not require tax returns?
Read our Advertiser Disclosure. Jump straight to it: The best mortgage lender that doesn’t require tax returns is CrossCountry Mortgage. Navigating the mortgage process can be a challenge if you’re self-employed, work part-time or have erratic income for other reasons. Lenders recognize that not everyone has a traditional 9-5 job.
How do I get a home loan without a tax return?
You could also be required to submit 1099s from the most recent tax year to prove your status as a self-employed applicant. To secure a home loan without a tax return, you’ll also need to make a down payment, usually between 10 and 20 percent.