Applying for Mortgage with no Tax Returns

14 Replies

I was looking to apply for a mortgage without issuing my Tax Returns. I have money saved up and my credit is almost 700...but don’t want to deal with the high interest rates from private lenders. Any advice would be greatly appreciated

(You need better "private" Lenders). Welcome to BP. Good luck...

Best you are going to get is a high mid 7 to low 8% loan with 75% ltv 

I am probably being generous with the high 7% quote since the credit score is below 700

@Tyrone DeVore  

What's the purpose/reasoning behind not wanting to issue your tax returns. With non-bank lenders usually the tax returns will not be used to calculate a DTI. The returns will be reviewed to confirm validation of application information, business ownership and good standing with the IRS.

Also at sub 700 FICO, you're looking at a rate from 7.0-8.50% depending on the lender and LTV.

honestly, it’s not that I don’t have them but with all of my expenses , it brought down my gross income tremendously and I’m afraid that will hurt my chances being that I recentley tried refinancing a vehicle was denied because of that.

Originally posted by @Tyrone DeVore :

honestly, it’s not that I don’t have them but with all of my expenses , it brought down my gross income tremendously and I’m afraid that will hurt my chances being that I recentley tried refinancing a vehicle was denied because of that.

"Refinancing a vehicle"? If that's typical of "all of my expenses", no wonder your net income (not gross income) was "brought down"! Looks like you could use a financial makeover? All the best...

Buy a copy of Dave Ramsey's book ASAP and get out of debt. 

Originally posted by @Tarik Turner :

Best you are going to get is a high mid 7 to low 8% loan with 75% ltv 

I am probably being generous with the high 7% quote since the credit score is below 700

 You're probably being generous with 75% also.  Most lenders cap <700 borrowers at 70%

Originally posted by @Tyrone DeVore :

I was looking to apply for a mortgage without issuing my Tax Returns. I have money saved up and my credit is almost 700...but don’t want to deal with the high interest rates from private lenders. Any advice would be greatly appreciated

 Tyrone

You should try to get a 2 unit property using FHA. Something you can rent out and try to get your mortgage paid by the tenant. You should also pay down whatever debt you have to get your credit score up.

You're not ready to invest using a mortgage that doesn't require tax returns.   Stabilize your personal credit and income picture and then once you get that taken care of, you'll be able to move forward; not until.  

Hope that helps

Stephanie

Can you do FHA with a Hard Money Loan/Private lenders


Originally posted by @Stephanie Potter :
Originally posted by @Tyrone DeVore:

I was looking to apply for a mortgage without issuing my Tax Returns. I have money saved up and my credit is almost 700...but don’t want to deal with the high interest rates from private lenders. Any advice would be greatly appreciated

 Tyrone

You should try to get a 2 unit property using FHA. Something you can rent out and try to get your mortgage paid by the tenant. You should also pay down whatever debt you have to get your credit score up.

You're not ready to invest using a mortgage that doesn't require tax returns.   Stabilize your personal credit and income picture and then once you get that taken care of, you'll be able to move forward; not until.  

Hope that helps

Stephanie

FHA is its own type of loan. Its not private or hard money. Its a conventional loan, with some additional terms.

That number on your tax return is your real income.  Money coming in is revenue, not income.  Income is revenue less expenses.  If you have lots of expenses the revenue is not all that relevant.  What you're really saying is you don't have enough income to qualify for a loan.  Hard and private money lenders aren't going to be all that much different in this regard than conventional lenders.

Really appreciate the feedback . Is it typical for banks to deny you for having high expenses on your returns?  maybe I’ll just re-apply tomorrow and see how it turns out. Originally posted by @Jon Holdman :

FHA is its own type of loan. Its not private or hard money. Its a conventional loan, with some additional terms.

That number on your tax return is your real income.  Money coming in is revenue, not income.  Income is revenue less expenses.  If you have lots of expenses the revenue is not all that relevant.  What you're really saying is you don't have enough income to qualify for a loan.  Hard and private money lenders aren't going to be all that much different in this regard than conventional lenders.

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