Can I get a mortgage without tax returns if I'm self-employed?

Yes. Bank statement loans qualify you on 12 or 24 months of business or personal deposits instead of tax returns. Asset depletion loans qualify you on liquid assets. DSCR loans qualify a rental property on its rent. These are non-QM loans available through brokers with access to specialty lenders.

Are bank statement loan rates higher?

Usually somewhat higher than a conventional loan, with larger down payments (typically 10 to 20 percent). The right comparison is not only against the conventional loan you were denied, but against waiting two years for more tax returns to season.

How is income calculated on a bank statement loan?

The lender totals eligible deposits over 12 or 24 months, applies an expense factor for business accounts (commonly 50 percent, less with a CPA letter or for low-overhead businesses), and divides by the number of months. Personal accounts receiving business income are often counted at 100 percent.

Self-employed · Business owners · Investors

Your income is real. Your tax return tells a shorter story.

If you run a business, earn well, and a bank told you to come back in two years, that one decision doesn't tell us whether another program fits. I'll review how your business actually earns money, compare the available approaches, and explain what each one costs and requires.

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David Martel · Mortgage broker, 100+ lenders · NMLS# 2521668 · Licensed in 20 states

Sound familiar?

One "no" didn't settle anything

Your CPA did a great job on your write-offs. Then the bank used the number at the bottom of Schedule C to tell you what you could afford.
You had a breakout year, and the lender averaged it with the slow one before it.
You pay yourself through an S-corp and nobody at the bank could explain what they were adding back.
You own rentals that cash flow fine, and your personal debt-to-income ratio says you can't buy another.
You retired early with plenty in the brokerage account and "no income."
You were approved, but for a loan that feels built for somebody else.

The tools

Four ways to qualify without a W-2

Each one is a real program with real underwriting. None of them are a trick. The skill is knowing which one your situation calls for, and which lender's version of it is actually competitive this month.

Bank statement loans

Qualify on 12 or 24 months of deposits instead of tax returns. Business accounts get an expense factor (often 50 percent, lower with a CPA letter or a low-overhead business); personal accounts receiving business income are often counted in full. Typical down payment 10 to 20 percent. Good for: contractors, agencies, salons, consultants, anyone whose deposits tell a better story than their 1040.

Example. $180,000 in business deposits over 12 months at a 50 percent expense factor is $7,500 a month of qualifying income; at a 30 percent factor, $10,500. The difference between those two numbers is the difference between two lenders, and it's my job to know which is which.

Watch: how to get a mortgage without tax returns
Read: how lenders read your business income

Asset depletion

Your liquid assets become qualifying income. Retirement accounts are commonly counted at 70 to 80 percent, brokerage and cash at 90 to 100 percent, then divided over a term (often 60 to 84 months) to produce a monthly figure. No employment required. Good for: early retirees, business sellers, anyone asset-rich and income-light on paper.

Example. A retired physician with $2 million in retirement accounts: $2,000,000 × 80% ÷ 60 months = $26,666 a month of qualifying income. The bank had said no.

Read: the bank said no, we got him approved anyway

DSCR loans for rentals

The property qualifies, not you. Lenders compare the market rent to the full payment (principal, interest, taxes, insurance, HOA). A ratio of 1.0 or better is the usual target, and some programs go lower with more down. No personal income, no tax returns, close in an LLC. Good for: investors who've hit the ten-loan limit, or whose DTI is maxed by their own business.

Example. $2,400 rent against a $2,000 total payment is a 1.20 DSCR. Same property at a 20 percent down payment instead of 25 might land at 0.95, which changes which lender wants it.

Read: DSCR loans with Phoenix numbers

P&L, 1099 and full-doc done right

Sometimes the answer is a conventional or FHA loan underwritten properly: the right add-backs (depreciation, amortization, one-time losses), the right income trend analysis, and a lender whose underwriters have seen an S-corp before. Other times a CPA-prepared profit and loss or 12 months of 1099s is the cleanest path. I'll show you the conventional option next to the non-QM one, with the real payment difference, and let you choose.

Read: conventional loan requirements in 2026

How it works

The Options Process, business-owner edition

Discovery
How you get paid, how your business is structured, what you're trying to buy or do, and what you've already been told.
Options
Within one business day: the conventional path if it exists, the non-QM path, the real cost of each, and my recommendation.
Your decision
Sometimes the right move is "file this year's return first and come back." If so, I'll tell you, and I'll tell you which documentation would make the difference.
Execution
I package the file the way a specialty underwriter wants to see it, because I've processed every one of my own loans since day one.

Self-employed? How to get a mortgage without tax returns (12:20)

The ability to find lower rates at different lenders, instead of having access to only one. David was up front and honest throughout the process.

Anthony H., refinance client

Straight answers

Self-employed mortgage FAQ

Are these "subprime" loans?

No. Non-QM means the loan doesn't fit the federal Qualified Mortgage definition, usually because of how income is documented, not because of credit. Most of my non-QM borrowers have strong credit and large down payments. They just don't have a W-2.

How much higher is the rate?

It varies by program and by month, but think in terms of a modestly higher rate rather than a different universe. I'll always show you the conventional alternative, if one exists, so you can see the actual difference in dollars and decide whether it's worth two more years of waiting.

Can I refinance out of it later?

Usually, yes. Many business owners use a bank statement loan to buy now and refinance into a conventional loan once two years of stronger returns are filed. We'll map that plan on day one if it makes sense.

How long have I needed to be self-employed?

Most programs want two years in the business, but many accept one year with a prior history in the same field. If you're newer than that, we'll talk about what gets you there.

Do you only do this in Arizona?

I'm licensed in 20 states: AZ, CA, CO, HI, KS, KY, MD, MI, MO, MT, NV, NJ, NC, OH, OR, SC, TN, TX, UT, WA, with Illinois pending. Everything is done by phone, video, and e-signature, with a notary who comes to you at closing.

Find out what's actually possible before you file another return.

A 15 to 30 minute conversation about how you really make money. Within one business day you'll have the conventional path, the non-QM path, or the plan to get to either. No application required to find out.

The consultation and the options review are free. If you choose to proceed, third-party costs such as HUD counseling and an appraisal may be due before closing. Licensed in 20 states; see the full list below.

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Prefer the phone? 623-698-5294, Arizona time.