Can You Buy a Home Without Filing Your Income Tax Returns?

One of the most common misconceptions I hear from self-employed clients and business owners is that they cannot buy a home because they have not filed their tax returns. This is simply not true. There are financing options designed specifically for people in this situation.

Bank Statement Loans

Bank statement loans are designed for self-employed borrowers who may not show sufficient income on their tax returns. Instead of relying on W-2s or tax transcripts, the lender reviews 12 to 24 months of bank statements to verify your income and ability to repay the loan.

This is a great option for business owners, freelancers, gig workers, and anyone who writes off significant business expenses on their taxes. The income that shows on your tax returns may be much lower than what you actually earn, and bank statement loans account for that.

Asset-Based Loans

If you have significant savings, investments, or other assets, some lenders offer asset-based loan programs. These use your liquid assets as the basis for loan qualification rather than traditional income documentation.

What You Will Need

While you may not need traditional tax returns, you will still need to demonstrate financial stability. Typical requirements include:

• 12-24 months of personal and/or business bank statements
• A minimum credit score (typically 620+)
• A down payment (usually 10-20% for bank statement loans)
• Proof of business ownership
• A letter from your CPA confirming your business is active and viable

I Can Help

I work with a network of lenders who specialize in these programs. If you are self-employed and have been told you cannot buy a home, please reach out. I want to share my knowledge with you and connect you with the right professionals who can make it happen.

Have questions? Contact me or call or text me at (623) 640-8840 anytime.