Can I Get A Mortgage without Tax Returns?

financing without taxes The short answer is YES you can. However, it will not be with a no income verification loan. The days of stated income and falsifying your income are pretty much gone for owner occupied properties, yet they still exist for investment properties and commercial real estate. The government feels that investors and lenders understand the risks involved with loans that don’t require 1040 forms.

There are a couple of popular loan programs borrowers can apply for in lieu of tax returns.

1.  Bank Statement Program

This programs works by having the borrower provide the lender with the most recent 24 months of bank statements which lets the underwriter see how much deposits are coming in every month. Some programs even allow business bank account statements and roommate income to be used.  The downside to this program are the interest rates are not as attractive starting at 1 – 1.5% higher than conventional rates.

2.  Low Doc Program

The low documentation programs work by having the borrower simply provide :

If salaried – paystubs and most recent year W2

OR

If self-employed, borrowers must  provide either A or B  listed below:

A )  Information from CPA:

  1. YTD P&L statement from CPA on CPA letterhead (un-audited)
  2. CPA Letter
    1. CPA to state that he/she has reviewed the borrower’s tax returns for the years 2011 and 2012
    2. CPA letter to verify borrower’s ownership of business for XXX amount of years.
    3. CPA letter to state borrower’s income
    4. CPA letter to show borrower’s business address for last 2 years
    5. CPA to state the type of tax returns that the borrower files (1040, 1120, K-1, etc)

OR

B   )  Information from both Borrower and CPA:

  1. 1 year tax returns from borrower
  2. YTD P&L statement from CPA on CPA letterhead (un-audited)

Additional criteria to be eligible:

     Loan Amounts: minimum $417,001  |  maximum  $2,000,000

      Credit Score:  700 FICO for purchase or  refinance
720 FICO for cash out refinance 
No major credit problems ever: (No Bankruptcy, Foreclosure, or Short Sale)

     Rates:  start at  5.50%  (rates are subject to change)

     Loan Type:   5/1 ARM

     Debt to Income Ratio:  40% maximum

     Property Types:  Single Family Residence

     Occupancy:   ONLY  Owner Occupied

     Liquid Assets:
          12 months Reserves for loans <= $1,000,000
18 months PITI Reserves for loans > $1,000,000