Gustan Cho Associates has mortgage with no income documentation, no tax returns, and low credit scores. 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. One of the most important factors lenders look in borrowers is qualifeid income.
No all income can be used by lenders and is considered qualified income. Only documented income such as salary and hourly income and adjusted gross income on tax returns is considered qualified income.
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. In the following paragraphs, we will cover qualifying for a mortgag with no income documenttion and no income tax returns.
How Can I Get A Mortgage With No Income Verification?
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 a mortgage with no income documentation.
Qualify For A Mortgage With No Income Verification
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Bank Statement Loans For Self-Employed Wage Earners And Business Owners
The good news for self-employed owners is that Gustan Cho Associates 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.
No-Doc Loans: What Are They And How Does It Work?
No-doc mortgages for primary homes are now available. No income verification or income documents is required on non-doc home loans for primary homes. The minimum credit score requirements is 640 FICO. Reserves is required. The amount of reserve requirements depends on the borrower’s credit scores and other risk factors.
Cases Where Get Mortgage With No Income Documentation Becomes Problem
Cases, where getting a 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.
W2-Income Only Mortgages
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?
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 who 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 their 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 or Conventional Loans. Click here to Get a mortgage with income documentation
Mortgage Loan Requirements With 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 mortgage 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.
How Does The Ownership Affect Being 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. 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.
How Will Being a Non-Occupant Co-Borrower Affect Their Ability In Getting a New Mortgage In The Future
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 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 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 800-900-8569 or text us for faster response. Or email us at gcho@gustancho.com.
Frequently Asked Questions About Mortgage with no Income Documentation:
Q: What is a Mortgage With No Income Documentation?
A: A mortgage without income documentation enables individuals to secure a home loan without needing to present evidence of their earnings, including pay stubs or tax returns. This option can benefit those whose income sources may not be easily documented.
Q: How Can I Get A Mortgage With No Income Verification?
A: Alternative loan programs make it possible to qualify for a mortgage without conventional income verification. Examples include bank statement loans and W2 income-only mortgages, allowing applicants to bypass traditional income documentation. These options can provide greater accessibility for those whose income details might not fit the standard molds.
Q: Who Can Benefit from a Mortgage with No Income Documentation?
A: Self-employed individuals, business owners, and people with hard-to-document side income or cash payments can benefit from these mortgages.
Q: Do I Need Tax Returns to Get a Mortgage With No Income Documentation?
A: No, you do not need tax returns. Some loans, like bank statement loans, do not require income tax returns to qualify.
Q: Can I Qualify for a Mortgage if I Only Have Cash Income?
A: If your income is entirely cash-based and not reported on your tax returns, it might be difficult to qualify for a traditional mortgage. However, some non-QM loans may still be available to you.
Q: What is a Bank Statement Loan?
A: A bank statement loan provides an alternative approach to qualifying for a mortgage by utilizing bank statements instead of traditional income tax returns. Lenders evaluate your average monthly deposits to assess your financial standing, making it an accessible option for many borrowers.
Q: What Are W2 Income-Only Mortgages?
A: A W2 income-only mortgage is a loan option for borrowers who are employees and receive a W2 form without the need for tax returns. It’s ideal for those who have a steady wage and don’t have additional sources of income to document.
Q: What Are Non-Occupant Co-Borrowers, and How Do They Help?
A: A non-occupant co-borrower is a person who assists in the mortgage qualification process by adding their income to the application, even though they do not live in the property. This can benefit individuals who may not have enough documented income. By leveraging a co-borrower’s income, potential buyers can enhance their chances of securing a mortgage, making it an appealing option for borrowers with financial difficulties.
Q: Will a Non-Occupant Co-Borrower Affect My Future Mortgage?
A: No, a non-occupant co-borrower will not impact their ability to apply for another mortgage if they show they aren’t responsible for the mortgage payments.
Q: Can I Get a Mortgage With No Income Documentation and Bad Credit?
A: Yes, it is possible. Some lenders, like Gustan Cho Associates, offer loans without income documentation and more flexible credit score requirements. However, you may need to provide other forms of qualification, such as a non-occupant co-borrower or a larger down payment.
This blog about “Mortgage With No Income Documentation and No Tax Returns” was updated on December 26th, 2024
