No Tax Return Mortgage Options for Self-Employed Homebuyers

Self-employed? You’re not alone—and you’re certainly not out of luck when it comes to financing a home or investment property. While traditional lenders often require years of W-2s and tax returns, there are flexible, investor-friendly mortgage options that focus on what you actually earn and own, not just what shows up on your tax return.

In this guide, we’ll break down your top “no tax return” mortgage options, how they work, who qualifies, and how you can use them to buy a home or scale your real estate portfolio faster.

Why Traditional Mortgages Don’t Work for Self-Employed Borrowers

Most banks and mortgage lenders rely on tax returns and W-2 income to verify your ability to repay a loan. But if you’re self-employed, you likely deduct business expenses—legally reducing your taxable income.

The problem? Lower taxable income means lower loan approval odds, even if your business is thriving.

That’s where non-QM loans (non-qualified mortgages) come in. These mortgage programs look beyond your tax returns and focus on real-world cash flow.

3 Flexible Mortgage Options with No Tax Returns Required

1. Bank Statement Loans

Best For: Self-employed individuals, freelancers, and small business owners.

How it Works:
Lenders review your last 12–24 months of business or personal bank statements to assess average monthly deposits. This becomes the basis for your qualifying income.

What You’ll Need:

• 12–24 months of bank statements
• A good credit score (typically 660+)
• 10–20% down payment
• Proof of self-employment or business ownership

Pros:
No tax returns or W-2s required
Common-sense underwriting
Can be used for primary homes or investment properties

Related Read: Bank Statement Loans for Self-Employed Real Estate Investors

2. DSCR Loans (Debt Service Coverage Ratio Loans)

Best For: Real estate investors whose rental income can cover the mortgage.

How it Works:
Instead of your personal income, lenders qualify you based on the income your property generates. If the rent covers the mortgage (usually a DSCR of 1.0 or higher), you qualify.

What You’ll Need:

• Minimum credit score (typically 640–680)
• 20–25% down payment
• A property that cash flows (via long-term or short-term rental)

No income documentation is required. That means no tax returns, W-2s, or employment verification.

Pros:
Perfect for LLCs and investors scaling portfolios
Works for short-term rentals (Airbnb)
Fast closings, minimal paperwork

Related Guides:

• How to Qualify for a DSCR Loan Without Traditional Income Verification
• DSCR Loans for Self-Employed Investors

3. Asset Depletion Loans

Best For: High-net-worth individuals with significant liquid or investment assets.

How it Works:
Instead of income, lenders use your total asset balance (stocks, savings, retirement accounts) to calculate a monthly “income equivalent.” This can help you qualify even without steady paychecks.

What You’ll Need:

• Liquid or semi-liquid assets (e.g., brokerage, retirement accounts)
• Strong credit profile
• Typically a 25–35% down payment

Pros:
No job or income required
Ideal for retirees or financially independent borrowers

Related Read: Asset Depletion Mortgage: An Innovative Financing Option

Real-World Example: How Rebecca Bought Without Tax Returns

Rebecca is a freelance UX designer earning $180K annually. But thanks to deductions, her tax return showed just $40K. Banks kept declining her.

Instead, she used a bank statement loan showing $15K/month in deposits over the last 12 months. She got approved for a $500K mortgage and purchased a duplex—living in one unit and renting the other.

Three years later, she refinanced with a DSCR loan using the rental income alone—and used a HELOC to buy her next property.

Want to Buy or Refi Without the Tax Return Headache?

You don’t need a traditional job—or traditional documentation—to start or scale your real estate journey. The key is knowing which financing tools work for your situation.

Ready to explore your no-income-verification options?
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FAQs: No Tax Return Mortgage Loans

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Whether you’re self-employed, a full-time investor, or just starting out—your financial future shouldn’t be limited by traditional paperwork.

Get pre-qualified with no income docs
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Explore your options with an expert

Read Next

• Bank Statement Loans 101: How They Work
• DSCR Loans vs. Conventional Mortgages
• Leveraging HELOCs for Real Estate Investment Success
• Self-Employed Mortgage Guide for Investors

Disclaimer: This article is for educational purposes only and does not constitute financial or legal advice. Always consult with a licensed mortgage advisor or CPA for your specific situation.