Mortgage With No Income Documentation And No Tax Returns

This Article Is About Qualifying For A Mortgage With No Income Documentation And No Tax Returns

Many folks who have established themselves with good credit and stable income and have decided that they are ready to become homeowners seek to get qualified for a home loan. However, there are a select few that even though they make a really good income, the income they make is either cash or cannot be documented. This 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 a mortgage with no income documentation is often a problem with many small business owners who run cash businesses. Business owners do 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 a decent 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 traditional mortgage loan, there is no way they will be able to get mortgage with no income documentation.

Good news for self-employed owners is that Gustan Cho Associates Mortgage Group now offers bank statement mortgage loans for self-employed borrowers. No income tax returns are required. 12 months bank statement deposits are averaged. The monthly average is used as borrowers’ monthly gross income.

Cases Where Get Mortgage With No Income Documentation Becomes Problem

Cases, where get mortgage with no income documentation became a major issue, are self-employed borrowers:

  • Wage-earners who write off too many unreimbursed expenses also had a difficult time qualifying for traditional home loans
  • A great benefit of getting a slick accountant who knew the loopholes in tax laws and be able to save tons of money by writing off many expenses may be great because of the tax savings and not paying Uncle Sam
  • However, this will really hurt consumers when it came 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
  • Unreimbursed business expenses will dwarf borrowers adjusted gross income is $10,000
  • Unreimbursed expenses need to be deducted by the gross income
  • Lenders use the adjusted gross income which is the borrower’s gross income fewer deductions

Great News for W2 income wage earners. Gustan Cho Associates Mortgage Group offers W2 Income Only Mortgages for W2 Income Wage Earners. Cannot have 1099 income, file Schedule E or Schedule C. Homebuyers who are W2 Income Only wage earners with a lot of unreimbursed business expenses can now qualify for W2 Income Only Mortgages with Gustan Cho Associates. No Income Tax Returns are required.

So How Can I Get Mortgage With Income Documentation?

So How Can I Get Mortgage With Income Documentation?

Homebuyers who cannot document their income or are claiming losses on income taxes due to being self-employed or a business owner, there are now options with bank statement loans and W2 Income Only Mortgages. Borrowers cannot document any income can explore W2 Income Only Mortgages or bank statement loans for self-employed borrowers. Borrowers thousands of dollars in losses every year from own business and negative income can go with bank statement loans for self-employed borrowers. The good thing about negative income is that mortgage underwriters will just count it as zero income. It will not offset any positive income from co-borrower or non-occupant co-borrowers on FHA and/or Conventional Loans.

Non-Occupant Co-Borrowers

If no documented income and want to purchase a home and do have decent credit, the borrower can qualify for an FHA or Conventional mortgages 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 on FHA Loans but not Conventional Loans. Father, mother, father in law, mother in law, grandparents, aunts, uncles, brothers, sisters, brother-in-law, sister-in-laws all qualify to be non-occupant co-borrowers for FHA. 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. This only holds true 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 main borrower.

Bottom line is that the mortgage payment 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. Need to wait 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 a mortgage with no income documentation, the answer is yes with a non-occupant co-borrower. Borrowers who need to qualify for a mortgage with a direct lender with no overlays on government and/or conforming loans or non-QM, W2 Income Only Mortgages, or bank statement loans for self-employed borrowers can contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at [email protected]

Leave a comment