Mortgage Myth #4: Your Tax Returns Don’t Show Enough Income
Tax Returns Don’t Define You — Especially Not in Mortgage Lending
It happens all the time. A self-employed borrower walks into a bank, submits their tax returns, and walks out discouraged — denied for a mortgage because their net income “doesn’t qualify.”
Here’s the problem: Net income isn’t always an accurate reflection of financial capacity — especially for business owners, freelancers, consultants, and investors.
That’s why we offer Non-QM mortgage options that tell the full financial story — not just what’s written on a tax form.
Understanding the Myth
Most conventional loans require full tax return documentation, W-2s, and predictable income streams. But if you write off expenses, earn 1099 income, or reinvest in your business, your taxable income might look artificially low.
That doesn’t mean you can’t qualify.
Real Solutions for Real Earners
Our Non-QM lending suite includes:
- 1099-Only Loans: No tax returns. We use your gross income as reported on 1099s.
- Bank Statement Loans: 12–24 months of personal or business deposits are averaged to calculate income.
- Asset Depletion Loans: We convert your liquid or investment assets into a monthly income model.
- DSCR Loans: For investment properties — we qualify based on rental cash flow, not your personal income.
- P&L-Only and No-Ratio Options: For highly liquid borrowers with complex financials.
Who This Helps
- Realtors, builders, consultants, and creatives
- Gig economy professionals
- Investors with multiple properties
- Business owners with complex deductions
- Retirees with high net worth but low income
Why This Myth Hurts Borrowers
Most banks and call centers are bound by rigid guidelines. If your paperwork doesn’t fit their mold, they stamp “declined” — and you’re left thinking you can’t buy.
That’s not the truth.
What We Do Differently
We underwrite what’s real. If you’ve been told “no” based on tax documents alone, we’ll show you how the right structure and loan type can turn that no into a yes.
Want to learn more about income-flexible mortgage solutions?
Contact me to (1) ask your questions and/or (2) to request our Non-QM Quick Guide.
Want to see other myths, check them out here.
