Mortgages That Don't Require Tax Returns

At a Glance

• Some mortgage programs allow qualified borrowers to use alternative income documentation instead of traditional tax returns.
• 1099, bank statement, DSCR, and asset depletion loans each use a different method to evaluate a borrower’s finances.
• These programs can be especially useful for self-employed borrowers, investors, freelancers, and high-asset individuals.
• A local Loan Officer can help determine which option best fits your income and financial situation.

 

TABLE OF CONTENTS:

• No Tax Returns? That Doesn’t Mean No Mortgage
• What is a No Tax Return Mortgage?
• 1099 Loans: Qualify Using Your Actual Income
• Bank Statement Loans: Let Your Cash Do the Talking
• DSCR Loans: Qualify Based on the Property, Not What You Earn
• Asset Depletion Loans: Turn Savings Into Buying Power
• Which No Tax Mortgage is Right For You?
• Why You Can Trust Treadstone with Non-Traditional Mortgage Options
• FAQs

 

No Tax Returns? That Doesn’t Mean No Mortgage

Traditional mortgages rely heavily on tax returns. For a lot of Michigan buyers, that works just fine. But for others (especially self-employed borrowers, investors, and high-asset individuals), tax returns don’t always tell the full story.

That’s where no tax return mortgage options come in.

These programs are designed to qualify buyers using real income, cash flow, or assets, rather than what shows up on a tax return after deductions (if you’re yelling, “Finally!” we are right there with you). If you’ve ever felt like your income looks great in real life but not on paper, this is where things start to open up.

At Treadstone, we help buyers match their financial reality with the right loan structure, not just the most common one.

 

What is a No Tax Return Mortgage?

A no tax return mortgage allows you to qualify for a home loan without providing traditional tax returns.

Instead, lenders may use:

• 1099 income
• Bank deposits
• Rental income from a property
• Liquid assets

This approach is especially helpful for borrowers who maximize write-offs, have variable income, or earn money outside of a traditional W-2 job.

 

1099 Loans: Qualify Using Your Actual Income

If you’re paid as an independent contractor, freelancer, or gig worker, a 1099 loan can simplify the process significantly.

Instead of digging through tax returns, lenders look directly at your 1099 income to determine eligibility.

This option works well for buyers who:

• Earn consistent 1099 income
• Have strong gross earnings but high write-offs
• Want a more straightforward qualification process

Treadstone’s 1099 loan offers flexibility with loan amounts up to $3 million, credit scores starting at 620, and options for primary homes, second homes, and investment properties.

It’s a clean, practical solution for buyers whose income doesn’t fit neatly into traditional guidelines.

 

Bank Statement Loans: Let Your Cash Do the Talking

For many self-employed buyers, income looks better in their bank account than it does on a tax return.

Bank statement loans use 12 to 24 months of deposits to calculate income instead of relying on reported earnings.

This approach is ideal for:

• Small business owners
• Entrepreneurs
• Self-employed professionals with strong revenue

Both personal and business accounts can be used, and like the 1099 loan, this option supports loan amounts up to $3 million with flexible qualification criteria.

It’s less about what you wrote off, and more about what you actually earn.

 

DSCR Loans: Qualify Based on the Property, Not What You Earn

DSCR (Debt Service Coverage Ratio) loans take a completely different approach.

Instead of evaluating your personal income, lenders look at the property’s rental income and whether it can cover the mortgage payment.

This is a go-to option for:

• Real estate investors
• Buyers building rental portfolios
• Short-term rental owners (including Airbnb properties)

Key advantages include:

• No personal income verification
• No tax returns, W-2s, or pay stubs required
• Ability to finance multiple properties (10+)
• Properties can be held in an LLC

For investors focused on scaling, DSCR loans remove many of the traditional roadblocks tied to personal income.

 

Asset Depletion Loans: Turn Savings Into Buying Power

You’ve gotten the picture by now, and so have lenders: not every buyer relies on traditional income. Some have built significant savings, investments, or retirement accounts instead.

Asset depletion loans allow you to qualify based on those assets by converting them into a calculated “income stream.”

This works well for:

• Retirees or semi-retired buyers
• High-net-worth individuals
• Buyers between jobs or with non-traditional income sources

Instead of asking, “What do you earn each month?” lenders ask, “What resources do you have available?”

It’s a different lens, and for the right buyer, it’s a powerful one.

 

Which No Tax Mortgage is Right For You?

Each of these loan options solves a different problem.

A 1099 loan simplifies income for contractors. A bank statement loan highlights real cash flow. A DSCR loan focuses on investment performance. An asset depletion loan leans on financial reserves.

The best fit depends on how you earn, how you report income, and what you’re trying to accomplish. What matters most is not forcing your situation into a traditional box when a better option exists.

More Michigan buyers than ever are earning income outside of traditional employment structures. Freelancing, contract work, investing, and self-employment have all become more common, and more complex from a lending perspective.

At the same time, buyers are getting smarter about taxes, often using write-offs to reduce taxable income. That’s great for tax season, but it can create challenges when applying for a mortgage.

 

Why You Can Trust Treadstone Funding + Neighborhood Loans with Non-Traditional Mortgage Options

Treadstone Funding + Neighborhood Loans has helped Michigan buyers navigate complex income scenarios with confidence. From self-employed entrepreneurs to experienced real estate investors, we’ve seen just about every version of “non-traditional” income out there.

Our team understands how to structure loans using 1099 income, bank statements, rental cash flow, or assets, and we guide clients through the process step by step so nothing gets lost along the way.

With hundreds of five-star Google reviews and deep experience across Michigan markets, we’re known for making complicated situations feel clear, practical, and doable.

When traditional guidelines don’t fit, we help you find the one that does.

 

FAQs

Can you get a mortgage without tax returns?

Yes. Several loan programs allow you to qualify without tax returns by using 1099 income, bank statements, rental income, or assets instead.

Who benefits most from a no tax return mortgage?

Self-employed borrowers, freelancers, real estate investors, and high-asset individuals often benefit the most from these programs.

Are no tax return mortgages harder to qualify for?

Not necessarily. They simply use different qualification methods. Requirements like credit score and down payment still apply.

Do these loans have higher down payment requirements?

Some programs may require higher down payments depending on credit and loan type, but options with as little as 10% down may be available.

Can I use these loans for investment properties?

Yes. Programs like DSCR loans are specifically designed for investment properties and rental income.

 

Terms and qualifications are subject to underwriting approval and can change without notice. Not all borrowers may qualify. Credit score and down payment examples are for illustrative purposes.