Can You Get a Home Loan Without Tax Returns?
Most people, when applying for a mortgage, expect to be asked for their tax returns. And for good reason. Lenders want proof that you earn enough to make your monthly payments, and your tax returns are often the easiest way to show that. But what if your tax situation is more complicated?
Maybe you’re self-employed, and your income doesn’t look great on paper. Maybe you’ve recently retired and are living off savings. Or maybe you just haven’t filed your tax returns yet for personal or business reasons. Whatever the case, the question stands: can you still get a mortgage without them?
The answer is yes—under certain conditions. There are loan programs and lenders that allow borrowers to qualify without using tax returns, but they come with their own requirements, risks, and limitations. Whether or not it makes sense for you depends on your income sources, your financial profile, and the type of loan you’re applying for.
When Tax Returns Are the Standard Requirement
For most traditional home loans, tax returns are non-negotiable. They’re used to confirm your income, track your financial consistency over the past two years, and help calculate your debt-to-income (DTI) ratio.
If you’re applying for any of the following, expect to show your tax returns:
- A conventional loan backed by Fannie Mae or Freddie Mac
- A Federal Housing Administration (FHA) loan
- A Department of Veterans Affairs (VA) loan
- A U.S. Department of Agriculture (USDA) loan
Lenders usually request your two most recent tax returns, sometimes in combination with recent pay stubs or W-2s. If you’re self-employed or a 1099 worker, they’ll also look closely at your Schedule C or corporate returns, depending on how your business is structured.
It’s not just about income. Lenders want to see stability and a history that makes sense. Big drops in earnings from one year to the next, or overly aggressive deductions, can raise questions. And for self-employed applicants, lenders typically average your income over the last two years, which makes it harder to qualify if one year was weaker than the other.
Who Can Qualify Without Tax Returns
Getting a mortgage without tax returns isn’t for everyone. But certain groups of borrowers are more likely to qualify, especially if they can show financial strength in other areas.
Self-Employed Borrowers
If you run your own business or work freelance, you may deduct a lot on your taxes, making your net income look low. That’s where bank statement loans come in. They allow you to show your real cash flow instead.
You’re a strong candidate if you:
- Can show 12–24 months of steady income deposits
- Have a solid business track record
- Maintain good credit and keep your debts low
- Some lenders may ask for a profit and loss statement or a letter from your CPA as extra support.
Retirees and High-Net-Worth Borrowers
If you’re not working but have enough saved up, lenders may let you qualify based on your assets. This is common for retirees who live off investments or distributions.
You may qualify by showing:
- Account balances that could cover several years of mortgage payments
- Social Security or pension statements, if applicable
- Retirement account access, if you’re over 59½
Real Estate Investors
Investors often avoid taking income from their properties to reduce taxes, which can make tax returns look light. But if the property cash flows well, a DSCR loan could work.
You’ll need to show that:
- The property earns enough to cover the loan
- Rents are stable and verifiable
- You have experience managing investment properties
Freelancers and Gig Workers
People who work for Uber, DoorDash, Upwork, or run online businesses might not have W-2s or predictable pay. But if they can show consistent deposits, they still have a chance.
Lenders may accept:
- Bank statements with regular client payments
- 1099s or invoices
- Contracts or ongoing work agreements
The Types of No Doc Mortgage 2025
If you’re not using tax returns to prove your income, you’re going to need a different kind of mortgage. These aren’t fringe products—they’re real, regulated loans used every day by people in situations like yours.
One common option is a bank statement loan. Instead of reviewing your tax returns, the lender looks at 12 or 24 months of your bank statements. They go through the deposits and figure out how much you really bring in each month. This is a good fit for freelancers, consultants, and small business owners who don’t have W-2 income but have regular deposits that clearly show what they earn.
Then there’s something called an asset depletion loan. This is designed for people who don’t necessarily have income from a job, but do have significant assets, like retirement savings, investment accounts, or a large balance in a brokerage account. The lender takes your total liquid assets and calculates how much income they could theoretically produce each month over a set period. That number becomes the income they use for your mortgage application.
DSCR loans, or debt service coverage ratio loans, are another path. These are meant for real estate investors. In this case, the lender isn’t concerned with your personal income. They look at the rental income the property generates (or is expected to generate) and compare it to the monthly mortgage payment. If the property brings in enough cash to cover the debt, you can qualify without ever showing your own tax returns.
There are also no-doc or low-doc loans, though these are far less common and usually reserved for borrowers with very strong credit and large down payments. In these cases, you don’t provide much paperwork at all—but you do pay for that convenience in the form of higher interest rates and stricter loan terms.
What Lenders Want Instead of Tax Returns
If you’re applying without tax returns, be ready to show other forms of documentation. Lenders still have to follow federal “ability to repay” rules, so they need to verify that you can afford the loan.
Here’s what they might ask for:
- Bank statements (usually 12–24 months) showing regular income or business deposits
- Asset documentation, like investment or retirement account statements
- Proof of business, such as a business license, website, or CPA letter
- Rental property records, like lease agreements and rent history
- Credit report, showing a solid history of on-time payments and responsible use
What to Watch Out For
Loans without tax returns can be a smart solution, but they aren’t risk-free. Because the lender is taking on more risk, you’ll likely face stricter terms in other areas.
Here’s what to expect:
- Higher interest rates—often 1–2% more than traditional loans
- Larger down payments—typically at least 20%, sometimes 30%
- Limited lender availability—not all banks offer these programs
- Manual underwriting—more paperwork, more scrutiny
- Reserve requirements—some lenders want to see 6–12 months of payments in savings
Make sure the numbers still work for your long-term financial plan. Sometimes it makes sense to wait and clean up your taxes first. Other times, especially if your income is stable but hard to document, a non-QM loan may be your best path to buying a home.
Impact of Unfiled Tax Returns on Mortgage Approval
Not having filed your tax returns can hurt your chances of getting approved. Lenders see this as a red flag. Even if you’re applying for a no-tax-return loan, many lenders will still request IRS Form 4506-C to check that your returns exist—even if they don’t need to review the numbers.
If the IRS has no record of a return, the lender may pause your application. And if you owe taxes, there could be a lien, which needs to be resolved before closing. Filing your taxes—even if late—can help avoid these complications and give you more flexibility in loan options.
How to Increase Your Chances of Approval
If you want a mortgage without using tax returns, focus on the parts of your application you can control. The more solid the rest of your financial file looks, the better your chances.
Here’s what helps:
- Keep your credit score as high as possible
- Maintain a consistent income flow, even if it’s from multiple sources
- Save a larger down payment to show financial strength
- Be organized with your bank statements and asset records
- Work with a loan officer or broker who understands non-QM loans
- Getting prequalified can also give you a sense of what’s realistic before you dive into house hunting.
What to Do If You Have Unfiled Tax Returns
If you’ve missed filing one or more years, it’s best to address it before applying for a mortgage. Even if you’re applying without using returns, lenders may still pull transcripts.
Here’s how to handle it:
- File the missing returns with the help of a tax professional
- If you owe taxes, set up a payment plan with the IRS
- Keep records of your filings and payment agreements
- Wait until the IRS updates your file before applying, if needed
Being proactive avoids delays and gives you more lender options.
When to File Past Tax Returns Before Applying
If you’re planning to file late returns, give yourself at least 30 to 60 days before applying. It can take that long for the IRS to process your documents and update your transcripts. Don’t wait until you’re mid-application.
If your returns show low income, and you’d rather qualify with bank statements, talk to your lender first. They can help you figure out whether to file now or wait until after the loan closes.
Final Thoughts
Getting a mortgage without tax returns isn’t only possible—it’s something thousands of people do every year. If your income doesn’t fit neatly into a W-2 box, or your tax returns don’t reflect your financial reality, there are still options on the table.
Bank statement loans, asset-backed loans, DSCR programs, and no-doc mortgages can help borrowers with unconventional financial means. Just keep in mind that you’ll need a strong credit history, assets, and a steady income.
If you’re not sure where to start, consider working with a mortgage broker who specializes in self-employed borrowers. They can help you decide on the best option and get you one step closer to owning your new home.