If you own a business, your accountant's job is to lower your taxable income. A traditional mortgage underwriter's job is to qualify you on that same taxable income. That conflict is why so many successful business owners get turned down.
Non-QM lenders offer alternative documentation programs — what we call No Tax Return Loans. They still verify that you can repay; they just use different evidence. Here are the six we use most.
1. Bank statement loans
Income is calculated from 12 or 24 months of bank deposits instead of tax returns.
- Personal statements: lenders typically average your eligible deposits.
- Business statements: lenders apply an expense factor (often a standard percentage, or one supported by a CPA letter) to your deposits to estimate income.
Best for: business owners with steady deposits whose tax returns show heavy write-offs. Bank statement loan details →
2. P&L-only loans
Income comes from a profit-and-loss statement, usually prepared or reviewed by a CPA, enrolled agent or licensed tax preparer, sometimes supported by a few months of bank statements. Best for: owners with clean bookkeeping and a professional who prepares their financials.
3. 1099-only loans
For independent contractors — real estate agents, rideshare and delivery drivers, consultants, insurance agents, healthcare contractors — lenders can qualify you using one or two years of 1099 forms, usually applying an expense factor instead of reading your Schedule C.
4. Asset depletion (asset utilization)
If you have substantial savings, investment or retirement accounts, the lender converts a portion of those assets into a monthly "income" figure by dividing them over a set number of months. Best for: retirees, recent business sellers, and people with significant assets but irregular income.
5. WVOE (written verification of employment)
Strictly speaking, WVOE is for wage earners, not the self-employed — but it belongs on this list because it's a no-tax-return option many families need. Your employer completes a form confirming your pay, and the lender qualifies you on that instead of W-2s and returns. It can help people who are paid by a family business, or W-2 employees who don't want to provide tax returns.
6. DSCR loans (investment property only)
For rental property, the lender qualifies the property's rent against its payment and doesn't look at your personal income at all. See our full guide: DSCR Loans Explained.
What to expect compared with a conventional loan
| Conventional | No Tax Return (Non-QM) | |
|---|---|---|
| Income proof | Tax returns, W-2s | Bank statements, P&L, 1099s, assets or rent |
| Rate | Generally lower | Generally higher |
| Down payment | As low as 3%–5% (primary home) | Often 10%–20% or more |
| Reserves | Varies | Usually required |
| Prepayment penalty | None | Possible on investment properties |
A good strategy for many owners is to use a No Tax Return loan now, then refinance into a conventional loan later if your filed returns improve. We'll show you both paths before you choose.
Compare all options on our No Tax Return Loans page, or join our free No Tax Return & Non-QM seminar.
Frequently Asked Questions
Can I get a mortgage without tax returns if I am self-employed?
Yes. Non-QM programs such as bank statement, P&L-only, 1099-only and asset depletion loans verify income with other documents instead of tax returns. Rates and down payments are typically higher than conventional loans.
How many months of bank statements do I need?
Most bank statement programs use 12 or 24 months of personal or business statements. The lender averages eligible deposits and, for business accounts, applies an expense factor.
Are no tax return loans only for investment properties?
No. Bank statement, P&L, 1099 and asset depletion loans can be used for a primary home, second home or investment property. DSCR loans are for investment properties only.
Want to know which option fits your situation?
Tell us a little about your scenario. No credit pull to start, and residential inquiries get a response the same business day.
Get Pre-Qualified or call 510-786-8739This article is for general educational purposes only and is not a commitment to lend or an offer of credit. Loan programs, guidelines, rates and eligibility change often and vary by lender; all loans are subject to credit approval, underwriting and property eligibility. SI MTG is a mortgage broker, not a lender. This is not tax or legal advice — consult a qualified tax professional or attorney about your situation. NMLS #300923 · CA DRE #01480904 · Equal Housing Opportunity.