Here are alternative ways to qualify for a mortgage without using tax returns:🏦 1. Bank Statement LoansHow it works: Lenders review 12–24 months of your business or personal bank statements to calculate your average monthly deposits (as income).Used for: Self-employed borrowers, business owners, gig workers, freelancers.What they look at:Deposit history and consistencyBusiness expenses (they’ll apply an expense factor, usually 30–50%)No tax returns or W-2s required.💳 2. Asset Depletion / Asset-Based LoansHow it works: Instead of income, your assets (like savings, investments, or retirement funds) are used to demonstrate repayment ability.Used for: Retirees, high-net-worth individuals, or anyone with substantial savings but limited current income.Example: $1,000,000 in liquid assets might qualify as $4,000–$6,000/month “income” (depending on lender formula).🧾 3. P&L (Profit and Loss) Statement Only LoansHow it works: Lender uses a CPA- or tax-preparer-prepared Profit & Loss statement instead of tax returns.Used for: Self-employed borrowers who can show business income trends but don’t want to use full tax documents.Usually requires: 12–24 months in business + CPA verification.🏘️ 4. DSCR (Debt Service Coverage Ratio) LoansHow it works: Common for real estate investors — qualification is based on the property’s rental income, not your personal income.Formula:Gross Rent ÷ PITI (Principal + Interest + Taxes + Insurance)DSCR ≥ 1.0 means the property “covers itself.”No tax returns, W-2s, or employment verification needed.💼 5. 1099 Income LoanHow it works: Uses your 1099 forms (from contract work, commissions, or freelance income) as income documentation instead of full tax returns.Used for: Independent contractors, salespeople, consultants, etc.Often requires: 1–2 years of consistent 1099 income.Higher down payment and interest rate required.tune in and learn https://www.ddamortgage.com/blogdidier malagies nmls#212566dda mortgage nmls#324329 Support the show

Ver todos los episodios