If you’re self-employed or own a business, you’ve probably heard that getting a mortgage is more complicated than for traditional W-2 employees. Many banks and lenders require at least two years of tax returns to verify income. But what if your tax returns don’t accurately reflect your actual cash flow?
Good news—there are mortgage options available that don’t require tax returns!
Understanding Traditional vs. Alternative Mortgage Loans
Traditional Mortgage Requirements
For most conventional and FHA loans, lenders require:
Two years of tax returns
W-2s or pay stubs (if applicable)
A solid debt-to-income (DTI) ratio
This can be a challenge for self-employed borrowers who take deductions on their taxes, making their taxable income appear lower than what they actually earn.
Alternative Mortgage Solutions: No Tax Returns Needed!
For self-employed individuals, business owners, and freelancers, there are Non-QM (Non-Qualified Mortgage) loans that use alternative income verification methods, such as: Bank Statement Loans – Instead of tax returns, lenders review your personal or business bank statements (usually 12 to 24 months) to assess your income.
Profit & Loss (P&L) Statement Loans – A CPA-prepared P&L statement can be used to show income instead of tax returns.
Asset-Based Loans – If you have significant savings or investments, you can qualify based on assets rather than income.
Who Can Benefit from These Loans?
These alternative loans are perfect for:
Self-employed individuals
Business owners
Freelancers & gig workers
Real estate investors
Commission-based
professionals
If you fall into one of these categories and have been struggling to get a mortgage, a bank statement or asset-based loan might be your best option.
How to Qualify for a No-Tax-Return Mortgage
Even without tax returns, you’ll need to meet some basic requirements:
Credit Score – A higher credit score improves approval chances (typically 620+).
Down Payment – Expect to put down at least 10-20% depending on the program.
Consistent Deposits – Lenders look at regular deposits in your bank statements to determine income stability.
Reserves – Some programs require you to have a few months’ worth of mortgage payments saved.
Is a Bank Statement Loan Right for You?
If your tax returns don’t reflect your true income, and you’re having trouble securing a mortgage, a bank statement loan or other Non-QM mortgage could be the solution. These programs are designed specifically to help self-employed borrowers get financing without jumping through unnecessary hoops.
Let’s Find the Right Mortgage for You
At GM Brokerage, we specialize in helping self-employed borrowers, business owners, and freelancers find the best mortgage solutions. If you want to explore bank statement loans, asset-based loans, or other flexible options, let’s talk!
626 346 7177 Call us today for a free consultation!