How to get a Mortgage without Tax Returns

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how to get a mortgage without providing

tax returns coming up hey guys I'm Adam

lessor and my oxygen is getting

borrowers approved when other lenders

say that it's just not possible

today I'm covering how to get a mortgage

without providing tax returns whether

you're a business owner a wage earner

w-2 employee or a real estate investor

we're gonna go into exactly how to get

approved without providing your tax

returns and closing successfully let's

take a look so the first one looking at

a bank statement mortgage if you are a

business owner and you've been in

business for at least two years a lot of

times you're gonna have some right offs

that you're gonna take advantage of and

you might you might have a CPA that

helps you take advantage of the write

offs that are available for you that's

great the only time it bites you in the

butt is when it's time to get a mortgage

so what you want to look at is getting a

bank statement mortgage a bank statement

loan and I'll include a link to

everything that I'm going over in in the

show notes and below so a bank statement

mortgage is where you provide 12 months

bank statements you can provide personal

bank statements or business bank

statements depending on how you pay

yourself some business owners pay

themselves out of their business account

into their personal account every two

weeks or whatever the case they paid

themself a salary that's fine but if you

are getting approved with a business

account or you use your personal account

as a business account you don't actually

have a business account what the lender

is gonna do is we're gonna look at

twelve months bank statements calculate

your deposits and give you a 50% haircut

because they have to account for

expenses now if you qualify with the 50%

haircut then you're good if you don't

then we need to get a P&L from a CPA or

a letter that states what your expense

factor is so minimum being 35% so if you

have a 35% expense factor that's applied

to your total income on your deposits

and your debt to income ratio works then

you're good to go so a few things to

keep in mind with the bank's name alone


there are some unusual deposits and

there's a lack of consistency it could

be an issue but a lot of times as long

as you can connect the dots and show

that it was related to business activity

then you should be good to go and you're

in good shape what I will tell you is a

banks name alone is a great solution for

business owners who are told that they

can't qualify for a mortgage because of

the way that they show their income on

their tax returns they may actually have

really good income and it's just a

matter of a technicality on some right

offset you took advantage of so I highly

recommend you look at a bank statement

mortgage number two for very well

qualified borrowers there is a profit

and loss only mortgage so you can get

approved based off of a CPA prepared

profit and loss statement over a

12-month period okay now I say very

well-qualified meaning you need to have

really strong credit you need to have a

very substantial down payment so this

isn't your regular situation this isn't

your typical scenario with purchasing or

refinancing a home it's a very very well

qualified situation number three if

you're a wage earner if you work for a

company and you are a w-2 employee you

may be able to get approved with just

providing your w-2s and your pay stubs

if your lender is telling you that you

have to provide your tax returns I'm

telling you right now it's because it's

an overlay you don't have to provide tax

returns if you're a w-2 wage earner on a

mortgage that may not be the case if you

are commissioned if you're a

commissioned employee you're gonna need

to provide your tax returns so that

doesn't apply for this scenario but if

your w-2 your salary or an hourly

situation tax returns no need you should

be fine

number four last one if you're a real

estate investor and a same thing as a

business owner you have a lot of right

offset you're taking advantage of or

maybe you have so many properties and in

the way that you show your income on

your tax returns it's just the bottom

line it's just not there for real estate

investors if you're looking to purchase

or refinance a home the approval can be

done based on cash flow of the property

not personal income this is Hugh

because this simplifies the entire

process and really just frees you up to

be able to do what you need to do in

terms of how you file your taxes and

still being able to invest in that next

property or refinance the properties

that you currently own so the way it

works is the lender is gonna order a

tunnel seven rent schedule this is a

form that shows the lender what the fair

market rent is it's included in the

appraisal but as long as the property

pays for itself as long as you're

breaking even and including principal

interest taxes and insurance and HOA

dues if you have HOA dues so long as

you're breaking even you're good to go

there's no more income verification you

don't provide pay stubs you don't

provide tax returns you don't provide

anything other than proof that the

property breaks even if you already own

the property and this isn't a purchase

you're gonna need to provide a lease

agreement if this is a refinance just

provide the lease agreement that you

currently have so about four ways to get

approved without providing tax returns

main statement mortgage for

self-employed borrowers a profit and

loss only mortgage for well qualified

business owners wage earners that are in

a w-2 and aren't commissioned

you don't need tax returns and lastly

real estate investors getting approved

based on cash flow so I hope that was

helpful again I'm gonna include a link

in everything that I just went over

below so take a look below in the

description hey guys thanks for stopping

by and watching the video I invite you

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job is to dissect some of the most

interesting mortgage challenges and give

you the tools and solutions you need to

accomplish your homeownership goals I

look forward to seeing you next time