People who are actively seeking a new home with good credit and stable income will search for a qualified loan officer. However, self-employed or those filing their own annual 1099 find it difficult to get traditional funding because it’s almost impossible to verify income and get the loan approved. Unfortunately, any undocumented income such as side jobs and cash income does not count and cannot be used to qualify income. Obtaining a mortgage with no income documentation is often problematic for small business owners who run cash based businesses and do not report all of their revenues yet, deduct as many expenses as possible. In many cases, small business owners generate a lot of revenues and make descent income, however, their tax returns only declare losses stating they have no positive income. This is good for the business owner as they will not have to pay any income taxes, however, when it comes time to approve a mortgage loan they simply do not qualify.
So How Can I Get Mortgage Without Income Documentation?
If you cannot document your due to being a self-employed business owner, you still have options where you can still qualify for a home loan. If you cannot provide proof of any of your income, then the bottom line for the income you have is zero. If you show losses every year from your business then you have negative income. The advantage of having negative income is the mortgage underwriters will just count it as zero income and will not count negatively from your co-borrower or non-occupant co-borrowers. If you have fair credit but no documented income and desire to purchase a home, you can qualify for an FHA Loan with a non-occupant co-borrower. The non-occupant co-borrower needs to be a relative to the borrower by law, blood, or marriage, grandparent, etc.. Non-occupant co-borrowers will be listed on the mortgage note but not on the title of the home. Non-occupant co-borrowers can still qualify for another mortgage loan after 12 months if they can providing they are solely a non-occupant co-borrower and are not obligated in paying the mortgage loan. The main borrower would need to provide12 months of canceled checks to show they are primarily responsible for the loan. So, with the help of a non-occupant co-borrower, you can qualify for a home mortgage loan with no income documentation.