How Much Can I Borrow If I Have No Tax Returns?

The traditional mortgage requires documentation that proves the applicant earns an income. Proof of income is important for lenders because they want to ensure the applicant has the ability to pay back the loan. The lending market has eased up on documentation requirements over the last decade. Thanks to the tools available to the industry, it’s possible to assess risk with other pieces of information. 

An individual with no tax returns can apply for a mortgage. In several cases, the individual will obtain the mortgage too. Low doc or no-doc loans have a different set of requirements. They also operate under a different set of parameters. Instead of shutting out this segment of the population from homeownership, homeownership is an achievable goal for more people.

Even traditional mortgages limit the amount offered to the applicant. In other words, everyone doesn’t receive 100% financing. Financing ranges from 60% to 110% for well-qualified applicants.

A no-doc loan finances 65% or 70% of the home’s value. Low doc loans finance 60%, 80%, and 90% of a home’s value. It depends on the interest rate you’re willing to take on and your current financial situation.

No Tax Returns and Home Loan Conclusion

If you have no tax returns, there are still loan options available to you. Our Mortgage House loan specialists can go over no doc and low doc solutions with you. After they examine your application, you’ll be notified of the amount you can borrow. In the meantime, try our mortgage calculator with no strings attached.