- A mortgage without tax returns still verifies income; it just uses other documents.
- Options include bank statement, 1099, P&L, asset-based, and DSCR loans.
- These non-QM programs vary by lender and are not available in all states.
- Lenders still review credit, reserves, and the property, so preparation matters.
Getting a mortgage without tax returns sounds too good to be true, so let's be clear about what it means. You still have to prove you can afford the loan. The difference is that the lender uses documents that show your real income, instead of the taxable income on your return.
For business owners, that difference can be huge. Your return is designed to lower your tax bill. A program that skips it can give a much more accurate picture of what you earn. Here is how it works and which options may fit you.
Why business owners look for a mortgage without tax returns
Conventional mortgages usually rely on two years of tax returns. The lender calculates your income from the net figures, after every deduction your CPA found.
That works against you if you write off vehicles, equipment, travel, a home office, or depreciation. Those deductions are legal and smart. But they can make your income look far lower than your bank account says it is.
Other reasons owners skip the tax-return route:
- A recent year was unusually low because of a big equipment purchase
- The business is growing fast and last year's return is already out of date
- Returns for the most recent year are still on extension
- Income comes from multiple businesses or entities that are complex to analyze
Is it legitimate?
Yes. These loans fall under a category called non-QM, or non-qualified mortgages. They follow ability-to-repay rules and still require full verification of your income, assets, and credit. They simply use alternative documentation.
What you will not find is a loan where nobody checks anything. Every legitimate program verifies that you can repay.
Your options at a glance
| Program | What replaces the tax return | Often a fit for |
|---|---|---|
| Bank statement loan | 12 or 24 months of bank statements | Owners with strong, steady deposits |
| 1099 loan | 1099 forms and sometimes a written verification | Contractors and commission earners |
| P&L loan | A profit and loss statement from a CPA or tax preparer | Owners with organized books |
| Asset-based loan | Liquid savings and investment balances | Borrowers with significant assets |
| DSCR loan | The property's rental income | Real estate investors |
Want to see what you qualify for?Answer a few questions. No tax returns, no credit pull to start.
See if you qualifyPrograms that replace the tax return
Each of these programs verifies income in its own way. Here is what to expect from each.
Bank statement loans
This is the most popular way to get a mortgage without tax returns. The lender reviews your deposits over 12 or 24 months, removes transfers and one-time items, and calculates a monthly income.
For business accounts, many lenders apply an expense factor, often around 50%, sometimes lower with a CPA letter. Personal account deposits are often counted more directly. Read the full breakdown in how bank statement loans work.
1099 loans
If clients pay you on 1099s, some lenders will use the gross income on those forms instead of your return. They typically apply an expense factor and may ask for one or two years of 1099s, depending on the program.
This option can be simpler to document than a full bank statement review. See our 1099 loan program for details.
Profit and loss statement loans
Some lenders will qualify you using a profit and loss statement prepared or reviewed by a CPA, enrolled agent, or licensed tax preparer. Some pair it with a few months of bank statements to support the figures.
Guidelines here vary a lot, so this is a good place to have a broker compare lenders for you. Learn more on our profit and loss loan page.
Asset-based loans
If you have substantial savings or investments but your income is irregular, an asset-based loan may help. The lender uses a formula to turn your eligible assets into a qualifying monthly income. Retirement and brokerage accounts may count, depending on the lender.
This can work well for retirees, business owners between ventures, or anyone with strong balances and uneven cash flow. See our asset-based loan program.
DSCR loans for investors
If you are buying a rental property, a DSCR loan looks at whether the property's expected rent covers its housing payment. Your personal income often is not used at all, so tax returns are usually not part of the picture. See our DSCR loan page.
What lenders still look at
Skipping the tax return does not mean skipping the rest of the file. Expect a lender to review:
- Credit. Many programs start around 620.
- Self-employment history. About two years is typical; some lenders consider less.
- Debt-to-income ratio. Some lenders allow up to around 50% with compensating factors.
- Down payment and reserves. Requirements vary by lender and program.
- Proof of business. A business license, articles of organization, or CPA letter.
Which option fits you?
Illustration: Picture two owners. The first runs a landscaping company with steady deposits of about $25,000 a month and big equipment write-offs. A bank statement loan likely tells her story best. The second is a software consultant paid on 1099s by three clients totaling about $180,000 a year. A 1099 loan may be the simpler path for him. Round numbers, illustrative only.
Your best option depends on how you are paid, how clean your records are, and what you are buying. Pricing depends on the file too, which is why we compare real offers across lenders instead of guessing.
How Matador helps
Matador Lending is an independent mortgage broker with access to more than 150 wholesale lenders. We look at your income documents, match them to the programs that fit, and show you the tradeoffs. Keep working with your CPA on taxes; our job is to find the loan that fits the way you already file.
When you are ready, check your options.
Frequently asked questions
Can you get a mortgage without tax returns?
Yes. Programs such as bank statement, 1099, P&L, asset-based, and DSCR loans verify income using other documents. They are non-QM loans, so availability and guidelines vary by lender and state.
What is the easiest way to get a mortgage without tax returns?
It depends on how you are paid. Owners with steady deposits often use bank statement loans, while contractors paid on 1099s may find a 1099 loan simpler to document. A broker can compare both.
Do mortgages without tax returns cost more?
They are often priced differently than conventional loans because they use alternative documentation. Your pricing depends on credit, down payment, property type, and lender, so comparing real offers is the best way to know.
Will the lender still check my credit?
Yes. Every legitimate program reviews your credit, assets, and ability to repay. Many programs start around 620.
This article is general education, not tax, legal, or financial advice, and not a commitment to lend. Loan programs, guidelines, and availability vary by lender and state and change without notice. Non-QM loans are subject to credit approval, income and asset verification, and appraisal. Talk with your CPA about tax questions. Small Business Mortgages is a marketing brand of Matador Lending, NMLS #2072896. Equal Housing Opportunity.