Also, you can't get an FHA loan or a VA loan without a tax return. These loans have low down payments of 0 to 3%, which can save you a lot of money when buying a home. Conversely, if you get a mortgage without a tax return, you should expect to pay 10 to 20% or more as a down payment. It is possible to apply for and get approved for an FHA loan without tax returns.
However, you must still provide your W2 documents and other documents when applying for an FHA loan. If you're self-employed, your options will be listed below. Do I need to file tax returns for an FHA loan? If you're trying to get an FHA loan, you'll be asked to file your tax returns for the past two years. The FHA guidelines also allow you to qualify using only your W2. You'll have to pay an upfront mortgage insurance premium equal to 1.75% of the loan amount at closing, although this may be included in the loan.
If you apply for an FHA loan without tax returns, you'll need the documentation listed below. Have no delinquent, tax-related or other federal debts or judgments, or debts associated with previous mortgages insured by the FHA. Since the FHA allows grant funds to cover those costs, one of these programs could help you pay for housing more comfortably. Some allowances can be made individually, but in general, you'll have to wait two years after a Chapter 7 bankruptcy and at least one year after a Chapter 13 bankruptcy to apply for an FHA mortgage.
It's worth noting that even with a lender that follows the FHA guidelines to the letter, you'll get better terms (such as a lower down payment and a higher allowance for existing debt) if you have a higher credit rating. The qualification process will be the same even though you don't include tax returns in your loan application. They are designed for self-employed borrowers who have not filed tax returns or show a very low net income. Mortgages backed by the Federal Housing Administration have different requirements than other types of mortgage loans.
The FHA loan program includes more lenient credit rating requirements, a low minimum down payment requirement, and the ability to add additional credit funds to add energy efficient features to the home. Due to increased risk, rates on mortgages that don't require tax reporting will be slightly higher than you might expect from a conventional loan. Today's no-tax investor loan will simply verify that there will be positive cash flow in the property you plan to purchase. The “T” stands for transcript and this signed form authorizes your FHA lender to contact the IRS directly for copies of your most recent transcripts.
