NO TAX RETURN SELF-EMPLOYED FLORIDA MORTGAGE LENDER’S 

Cash – Minimum 10% Down + Closing Cost + Reserves.
Credit – Minimum 575 Credit score.
Capacity – Maximum 55% 
Collateral – Single-family, Townhomes, Villas, Condos, Manufactured.

How do I get a Self-employed Florida Mortgage with No Tax Returns?

In 2010 the Dodd-Frank Wall Street Reform and Consumer Protection Act required that for Florida no tax return mortgage lenders to make a reasonable and good faith determination based on verified documentation that the consumer has the ability to repay the loan on a primary residence. We qualify your income using 12 or 24-month bank statements average deposits, 1099s avg 2-year income, or/and lease agreements for income-qualifying with NO TAX RETURNS NEEDED!

Why Do Self-Employed Mortgage Applicants Have A Hard Time Getting A Mortgage?

It can be more challenging for self-employed individuals to get a mortgage due many reasons including:

Income Documentation: Unlike those with a regular paycheck (W-2 income), self-employed individuals often have more complex income streams. Lenders require thorough documentation to verify income stability and calculate an average income, which can be more difficult with fluctuating self-employment income.  
Tax Write-offs: Self-employed individuals often take advantage of tax deductions and write-offs, which can lower their net income as reported to lenders. While these deductions are legal and beneficial for tax purposes, they can make it appear as though the self-employed borrower has less income than they actually do.  
Income Fluctuation: Self-employment income can vary significantly from month to month or year to year. This fluctuation can make it harder for lenders to assess the borrower’s ability to consistently make mortgage payments.  
Business Expenses: Self-employed individuals often have significant business expenses, which can further complicate income assessment. Lenders need to carefully analyze these expenses to determine the borrower’s true disposable income.  

How Do the self-employed qualify for a Florida Mortgage? 

Maintain detailed financial records: Keep accurate and organized records of all income and expenses, both personal and business-related.
Provide thorough documentation: Be prepared to provide lenders with several years of tax returns, bank statements, profit-and-loss statements, and other financial documents.
Demonstrate income stability: If possible, show a consistent income history over several years.
Maintain a good credit score: A strong credit score is essential for any mortgage applicant, including the self-employed.  
Lower debt-to-income ratio: Reducing overall debt can improve the chances of mortgage approval.
Work with a mortgage specialist: Seek out lenders or mortgage brokers who specialize in working with self-employed borrowers.
By taking these steps, self-employed individuals can increase their chances of securing a mortgage and achieving their homeownership goals.

Qualifications For A Self-Employed No Tax Return Florida Mortgage:

• Proof of income = Your most recent 12- or 24-month bank Statements Business or Personal bank statements EVERY PAGE EVEN BLANKS in PDF labeled by month.
• PDF proof of down payment statement= 2 Months Bank Statements to source funds..
• Proof of 2 years in the same business or line of work = To include business licenses or satisfactory evidence of self-employed to cover the previous 24 months that could include: Articles of incorporation, 2 years of 1099 s, Business license of more than 2 years or accountant letter stating more than 2 years in the same business.
• Obligations = Divorce decree, Child support or court order required payment statements. Only if applies.
• ID = Driver’s license, SS Card.
• Mortgage Statements = For rental properties including taxes and insurance statements. Only if applies.
• W2 or 1099= If you have separate W2 or 1099 income you would like to use to qualify please provide it.
• Purchase and Sale Contact. Only if you have one.
• Verified Timely Rent Payments- For Purchases Only – Please send front and back of checks clearing your account or wire transfer’s for the most recent 12 months to verify timely rental payments.
  

 Why self-employed individuals may have trouble getting a mortgage:

Income Variability: Self-employed income can fluctuate more than that of a salaried employee. Lenders prefer consistent and predictable income when assessing mortgage eligibility.

Documentation Challenges: Self-employed individuals may need to provide more extensive documentation to prove their income and financial stability. This can include tax returns, bank statements, profit-and-loss statements, and other financial records.  

Credit History: Self-employed individuals may have a shorter credit history or less established credit than salaried employees, which can make it harder to qualify for a mortgage.

Higher Risk Perception: Lenders may perceive self-employed individuals as higher risk borrowers due to the potential for income instability and the challenges in assessing their financial situation.  

Tax Write-Offs: Self-employed individuals often take advantage of tax deductions and write-offs, which can lower their reported net income. Lenders primarily look at net income when evaluating loan applications.  

Here are some strategies that self-employed individuals can use to increase their chances of getting a mortgage:

Maintain detailed financial records: Keep accurate and up-to-date records of income, expenses, and business finances.

Show consistent income: Demonstrate a stable and consistent income stream over several years, even if there are fluctuations.

Minimize tax write-offs: While it’s important to take advantage of legitimate tax deductions, avoid excessive write-offs that could significantly lower your reported net income.

Build a strong credit history: Establish a good credit score and maintain a positive credit history by paying bills on time and managing debt responsibly.

Save for a larger down payment: A larger down payment can help offset the perceived risk associated with self-employment and increase the chances of loan approval.  

Shop around for lenders: Different lenders have varying requirements and criteria for self-employed borrowers. It’s important to shop around and compare loan offers from multiple lenders.

Consider alternative loan options: Explore alternative loan options, such as bank statement loans or asset-based loans, which may be more suitable for self-employed individuals.

Seek professional advice: Consult with a mortgage broker or financial advisor who specializes in working with self-employed borrowers. They can provide guidance on preparing for the mortgage application process and finding suitable loan options.

Remember that while being self-employed can present some challenges in getting a Florida mortgage, it’s not impossible.

By being organized, demonstrating financial stability, and exploring different loan options, self-employed individuals can successfully secure a mortgage.  

What Does The No Tax Return Loan Application Process Look Like?

To apply for a bank statement loan you would fill out our full mortgage application. Then provide your last 12 or 24  months’ worth of bank statements from a personal or business bank account. Bank statement mortgage loans are processed through a manual underwriting process. This means the income is calculated by a person so the process can take 24 -48 hours.

Am I Eligible for a loan with No Tax Returns? What is Required?

• You must prove self-employment for a minimum 2 years.
• Must provide proof of 12-month rental history or and 3-6 months future payments in reserves.
• You must have at least 10% down.
• You must have 4-6 months of PITI reserves
• You may qualify with as little as a 12-months bank statement.
• You must have a credit score of 600 or above to qualify.
• The minimum loan amount is $100,000, and the maximum loan is $5,000,000.

Minimum Credit Score For NO Tax Return Florida Mortgage Lenders

Product Types 30-year Fixed, 5/1 ARM, 7/1 ARM, 10/1 ARM, 5/1 ARM-IO, 7/1 ARM-IO, and 10/1 ARM-IO 

• 350+ QUALIFICATIONS- 350+ FICO Mtg 0x60 (12 Months) No BK 18 Months/FC 2 Years SS/DIL Settled Purchase 60% LTV RT Refi 55% LTV Cash-out Refi 80% LTV 2nd Home 75% LTV 
• 600+ QUALIFICATIONS- 600+ FICO Mtg 0x60 (12 Months) No BK 18 Months/FC 2 Years SS/DIL Settled Purchase 75% LTV RT Refi 80% LTV Cash-out Refi 80% LTV 2nd Home 75% LTV 
• 640+QUALIFICATIONS- 640+ FICO Mtg 1×30 (12 months) No BK/FC 2 Years No SS/DIL 1 Year Purchase 75% LTV RT Refi 85% LTV Cash-out Refi 85% LTV (680 FICO, otherwise 80%) 2nd Home 75% LTV  
•  680+QUALIFICATIONS- 680+ FICO Mtg 0x30 (12 Months) No BK/FC 3 Years No SS/DIL 2 Years Purch. 90% LTV – Full Doc & 12 or 24 months BK statements RT Refi 80% LTV Cash-out Refi 80% LTV 2nd Home 80% LTV 
• 720+QUALIFICATIONS- 720+ FICO Mtg 0x30 (12 Months) No BK/FC 3 Years No SS/DIL 2 Years Purch. 90% LTV – Full Doc & 12 or 24 months BK statements RT Refi 90% LTV Cash-out Refi 85% LTV 2nd Home 80% LT.

No Tax Return Mortgage Use Bank Statement, 1099, K1, VOE, P&L’s 

Occupancy: Owner-Occupied & Second Home, Investment

Property Types:

• Single Family – Condos – Townhouses – 2 to 4 Units.
• Condotels – NO area restriction.
• Non-Warrantable condos.

Property Condition:

• Property must show “Pride of Ownership”.

Loan Terms:

• All loans are 5-year, 7-year, interim fixed, variable-rate, and 30-year fully amortized products.
• Index – SOFR- Caps 2/2/6 – Floor = Start Rate.
• 30-year fixed option available. See add-on section.

Loan Amounts:

• $100K Minimum to $5 million Maximum – Owner Occupied.
• Loan amounts over $1 million need managing underwriters’ approval.
• Loan amounts greater than $2 million require 2 Appraisals.

Debt to Income (DTI):

• 55% max DTI with 24 months bank statements, traditional Full-Doc, and LTVs up to 80%.
• 50% max DTI for other ATR tests, Interest Only, and LTVs over 80%.

Income Documentation:

• Full Doc – W-2’s & Paystub, 1040’s
• Alt Doc – 12- or 24-months bank statements.
• VOE Only Program – For NON-Self-Employed Borrowers Only:
• Verifiable VOE from Employer (not self-employed or self-prepared). The VOE must be fully filled out and must include all income and averages. The VOE must be signed and dated by the employer with accurate contact info. 1099 Only Program: For Non-Self-Employed Independent Contractors
• 2 Years 1099’s
• Athas to verbally verify the accuracy of income on 1099’s

K-1’s Only Program:

• 2 Years K-1s
• CPA, certified tax preparer or enrolled agent attesting that K-1’s are accurate & borrower self-employed for 2 years or more.

P&L’s Only Program – For Self Employed Borrowers Only:

• 2 Years Complete Profit and Loss Statement and Complete YTD Profit and Loss Statement
• Professionally Prepared P&Ls – Verifiable letter from licensed CPA, Certified Tax Preparer or Enrolled Agent attesting that they prepared the P&L statements.
• Borrower Prepared P&Ls – Borrower to sign and date the P&Ls and attest to the accuracy of the P&L’s via a handwritten, signed, and dated letter. And a verifiable letter from a licensed CPA, Certified Tax Preparer or

Enrolled Agent attesting the borrower prepared P&Ls are factual.

• Proof that the borrower has been self-employed for that business for 2 years.

Asset Depletion Program – Available for All Employment Types including Retired/Unemployed:

• Qualifying income is based upon Total Assets Eligible for Depletion, less down payment, less out-of-pocket closing costs, less required reserves, divided by 60. This amount will be used as the monthly income. Debt calculations will need to include all debts, not just housing debts. Down Payments or Liquid Cash Reserves:
• All down payment funds MUST be sourced & seasoned in the last 60 days from 80.01-90% ltv.
• All down payment funds MUST be sourced & seasoned in the last 30 days up to 80% ltv.
• 100% Gift funds are acceptable up to 80% LTV – direct relative. $1M-$4M 50% can be a gift.

Pre-Pay Note:

• No pre-payment penalty on ANY consumer products.
• Rate floats until docs are delivered

Federal / State Tax Liens & Judgments:

• All income tax liens & judgments on credit must be paid through closing if they are in excess of $2,500. All tax liens and judgments on the title must be paid.

High-Cost Loans: High-cost loans are unacceptable.

SELF-EMPLOYED NO TAX RETURN FL MORTGAGE LENDER’S SNAPSHOT:

• 10% Down with minimum credit score required. 
• No tax returns are Needed! Proof of 2 years self-employed!
• Owner-occupied, 2nd homes and investment properties.
• Loan Amounts From $100,000 to $3,000,000.
• 12 months personal or 24 months business bank statements, or 1099 or w2 only or use Lease Agreements for income!
• Debt to income up to 50% considered.
• Choose either a 30-year fixed 5/1 and 7/1 ARM’S.
• No prepayment penalty for owner-occ and 2nd homes
• Seller-paid closing cost allowed up to  6%. 
• Business Bank Statement Expense Ratio determined by lenders questionnaire to estimate your expense ratio.

What Documents Do I Need For A No Tax Return Florida Mortgage?

• Proof of income = Your most recent 12- or 24-month bank Statements Business or Personal bank statements EVERY PAGE EVEN BLANKS in PDF labeled by month.
• PDF proof of down payment statement= 2 Months Bank Statements to source funds..
• Proof of 2 years in the same business or line of work = To include business licenses or satisfactory evidence of self-employed to cover previous 24 months that could include: Articles of incorporation, 2 years of 1099 s, Business license more than 2 years or accountant letter stating more than 2 years in the same business.
• Obligations = Divorce decree, Child support, or court order required payment statements. Only if applies.
• ID = Driver’s license, Social Security Card.
• Mortgage Statements = For rental properties including taxes and insurance statements. Only if applies.
• W2 or 1099= If you have separate W2 or 1099 income you would like to use to qualify please provide it.
• Purchase and Sale Contract. Only if you have one.
• Verified Timely Rent Payments- For Purchases Only – Please send front and back of checks clearing your account or wire transfers for the most recent 12 months to verify timely rental payments.

What Does The Loan Application Process Look Like?

To apply for a bank statement loan you would fill out our full mortgage application. Then provide your last 12 or 24  months’ worth of bank statements from a personal or business bank account. Bank statement mortgage loans are processed through a manual underwriting process. This means the income is calculated by a person so the process can take 24 -48 hours.

Am I Eligible for a loan with No Tax Returns? What is Required?

• You must prove self-employment for a minimum of 2 years.
• You must provide proof of 12-month rental history or 3-6 months of future payments in reserves.
• You must have at least 10% down.
• You must have 4-6 months of PITI reserves
• You may qualify with as little as a 12-months bank statement.
• You must have a credit score of 600 or above to qualify.
• The minimum loan amount is $100,000, and the maximum loan is $5,000,000.

What Are the Advantages of a Bank Statement Mortgage Loan?

In summary, these are the advantages of a bank statement loan:

• The lender can look at 12 or 24-month bank statements.
• 30-Year Fixed Options.
• Bank statement-only mortgage lenders do not need to look at your tax returns.
• Your income statements are made up of the average monthly income deposits.
• You can get a bank statement home loan for as little as 10 percent down.
• You can do a cash-out refinance.
• You can borrow up to $5 million.
• Debt to income ratio up to 55 percent.

What Are The Eligibility Requirements for a Bank Statement Mortgage Loan?

The income is determined by adding bank statement deposits minus business expenses. This amount is then divided by the number of bank statements, we offer 12 and 24 months bank statement options and the lender will give you the average for income qualifying.

Another option is that if the co-borrower is a W2 employee you can ADD the  W2 and or tax return income from the co-borrower to the bank statement income from the self-employed borrower and or assets from the co-borrower and bank statements from the borrower. Non-QM loans can use multiple sources of blended incomes to qualify.

Are There Any Special Considerations By Florida Bank Statement Mortgage Lenders?

• You can use either business or personal no commingling.
• Use the average of 12 months of business bank deposits accounts or personal accounts depending on the lender.
• Deposits which are transferred from a business account into a personal account are OK.
• You may combine W2 income with bank statement income as long as the income is not being counted twice.

NO TAX RETURN FLORIDA MORTGAGE LENDERS EXPLAINED

If you’re self-employed in Florida seeking a Florida mortgage can be difficult if you write off most of your income.  Here’s what you need to know if you’re looking to qualify for a Florida mortgage without providing your last 2 years’ tax returns required by Florida banks and mortgage lenders.

Not all banks and Florida mortgage lenders will require tax returns for getting a mortgage. If you are self-employed in Florida and it is your goal to use your self-employment income to qualify for a Florida mortgage in most cases you will have to provide either (2) two years of tax returns or one year of income tax returns if you have been in business for at least 5 years.

If it is your desire to try to qualify for a Florida mortgage without providing tax returns without meeting mentioned items you will need to apply for Bank Statement only loan. Your other option may be to pay off debt or  obtain a co-signor if you do not show enough income

If you are a  W-2 employee and you don’t receive social security or rental income and you do not have any other side businesses you need not worry about providing your tax returns to Florida mortgage qualify. Supplying your last 2 years’ w2s and your most recent 30 days of pay stubs will work instead of tax returns.  Fannie Mae and Freddie Mac, FHA, VA  will allow w2 only and pay stubs without the last 2 years’ tax returns. However, the Florida mortgage lender may still require IRS 4506T.