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Self Employed No Tax Return Mortgage Loans

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This BLOG On Self Employed No Tax Return Mortgage Loans Was PUBLISHED On January 4th, 2019

Self Employed No Tax Return Mortgage Loans has been non-existent between the 2008 Great Recession and early 2017.

  • However, Self Employed No Tax Return Mortgage Loans made a comeback in the spring of 2017
  • Gustan Cho Associates at Loan Cabin Inc. now offers bank statement loans for self employed borrowers
  • No income tax returns are required
  • 12 months bank statement deposits are averaged
  • Average bank statement deposits are used as monthly gross income
  • Withdrawals does not count
  • So for example, if borrower makes an average $10,000 deposit in bank account and withdraws $9,999, the $10,000 deposit will be used as borrowers monthly gross income

Benefits Of Self Employed No Tax Return Mortgage

Until now, many self employed folks were unable to qualify for home loans.

  • Self employed borrowers could not qualify for mortgages due to the massive writeoffs they are entitled too
  • Lenders use adjusted gross income from borrowers income tax returns
  • Many self employed borrowers often have very little to no income declared as their adjusted gross income
  • Many business owners make a lot of income and can afford higher end homes
  • Issue is they could not qualify for Self Employed No Tax Return Mortgage until now due to writeoffs on their tax returns

Loan Limits On Self Employed No Tax Return Mortgage

A great benefit on self employed no tax return mortgage financing is there is no loan limits.

  • Many self employed borrowers with lucrative businesses can afford higher end homes
  • Government and conventional loans have maximum loan limits
  • Traditional Jumbo Mortgages are often difficult to qualify for unless borrowers are W2 employees
  • Now with the launch of self employed no tax return mortgage, borrowers can qualify for higher end home loans without tax returns

Mortgage Regulations On Income Qualifications

Here is the rules and regulations with the Dodd-Frank Act:

A lender “making a residential mortgage loan shall verify amounts of income or assets that such creditor relies on to determine repayment ability, including expected income or assets, by reviewing the consumer’s Internal Revenue Service Form W–2, tax returns, payroll receipts, financial institution records, or other third-party documents that provide reasonably reliable evidence of the consumer’s income or assets.

The above quotation from Dodd-Frank gives lenders the right to verify income beyond the traditional paycheck stubs and W2s. This enables self employed borrowers to qualify for mortgage with verification of bank statement deposits. This eliminates the requirement of income taxes. Since the launch of self employed no tax returns mortgage, Gustan Cho Associates at Loan Cabin’s business has increased by over 50%.

Self Employed No Tax Return Mortgage Guidelines

Here are the basic self employed no tax return mortgage guidelines:

  • 10% to 20% Down Payment
  • Amount of down payment depends on borrowers credit scores
  • No private mortgage insurance required
  • Mortgage rates depends on down payment (LTV) and credit scores
  • No maximum loan limits on non-qm loans and bank statement loans for self employed borrowers
  • Credit scores down to 500 FICO
  • No waiting period after housing event and/or bankruptcy
  • Housing event is defined as foreclosure, deed in lieu of foreclosure, short sale

Qualifying For Self Employed No Tax Return Mortgage With Gustan Cho Associates

Gustan Cho Associates at Loan Cabin Inc. are direct lenders with no overlays on government and conventional loans. The Gustan Cho Team at Loan Cabin Inc. are also mortgage experts in bank statement loans for self employed borrowers and non-qm loans. Contact us at 262-716-8151 or text us for faster response. Or email us at gcho@loancabin.com. We are available 7 days a week, evenings, and weekends.

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