How Can I Get Mortgage With No Income Documentation?

Many folks who have established themselves with good credit and stable income and have decided that they are ready to become homeowners seek a mortgage loan officer to get qualified for a home loan. However, there are a select few that even though they make real good income, the income they make are either cash or cannot be documented because their employer pays them by check without any tax deduction . Unfortunately, in the mortgage business, any undocumented income such as side jobs and cash income does not count and cannot be used for income qualification. Getting mortgage with no income documentation is often a problem with many small business owners who run cash businesses and not report all of their revenues and deduct as many expenses as possible.  There are cases where small business owners generate a lot of revenues and make descent income, however, on their tax returns they declare losses where they have no positive income. This is great because the business owner does not have to pay any income taxes, however, when it comes time to qualify for a mortgage loan, there is no way they will be able to get mortgage with no income documentation.

Cases Where Get Mortgage With No Income Documentation Becomes Problem

Cases where get mortgage with no income documentation becomes a major issue are self employed borrowers and wage earners who write off too many unreimbursed expenses. A great benefit of getting a slick accountant who knows the loopholes in tax laws and be able to save you tons of money by writing off many expenses may be great because you do not have to pay Uncle Sam, however, this will really hurt you when it comes to qualifying for a mortgage loan. There are W2 wage earners who may make $40,000 per year but may write off $30,000 in unreimbursed expenses where their adjusted gross income is $10,000.  Unreimbursed expenses needs to be deducted by the gross income and mortgage lenders use the adjusted gross income which is the borrower’s gross income less deductions.

So How Can I Get Mortgage With Income Documentation?

If you cannot document your income or you are claiming losses on your income taxes due to being self employed or a business owner, there are potential solutions where you can still qualify for a home loan.  If you cannot document any of your income, then the bottom income you have is zero. If you have thousands of dollars in losses every year from your business, you have negative income. The good thing about negative income is that mortgage underwriters will just count it as zero income and will not off set any positive income from your co-borrower or non-occupant co-borrowers. If you have no documented income and want to purchase a home and do have descent credit, you can qualify for a FHA Loan with a non-occupant co-borrower.  The non-occupant co-borrower needs to be a family member and/or relative that is related to the borrower by law, blood, or marriage. Father, mother, father in law, mother in law, grand parents, aunts, uncles, brothers, sisters, brother in laws. sister in laws all qualify to be non-occupant co-borrowers.  Non-occupant co-borrowers are on the mortgage note but not on the title of the home. Non-occupant co-borrowers will not be affected in getting another mortgage loan after 12 months if they can prove that they are solely a non-occupant co-borrower and is not obligated in paying the mortgage loan by providing 12 months canceled checks of the the main borrower. Bottom line is that the mortgage payment will that the non-occupant co-borrower signs for will not affect his or her debt to income ratios in the event if they were to purchase another home at least one year from the date they signed for the mortgage note as the non-occupant co-borrower. So the answer to the question of can I get mortgage with no income documentation, the answer is yes with a non-occupant co-borrower.


The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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