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NO TAX RETURNS NEEDED!
QUALIFY USING BANK STATEMENT ONLY
Self-Employed Mortgage Lenders Program Highlights Summary

Are copies of tax returns required for a Borrower with self-employment or commission income?

• Where can I find employment documentation requirements? Employment income refers to income received as an employee of a business that is reported on IRS Form W-2.  For employment related income, the No Tax Returns, No W2, No 1099 Mortgagee must verify the borrower’s most recent 2 years of employment and income and use one of the following doc…

• What is effective income in a HECM transaction and must it be reported on a borrower’s tax returns?
  Effective Income is income that is reasonably likely to continue through at least the first three years of the No Tax Returns, No W2, No 1099 mortgage and that meets the standards to be included in the calculation of residual income. The lender may only consider income if it is legally derive…

• Can rent received from boarders be used as income for No Tax Returns, No W2, No 1099?
  Boarder refers to an individual renting space inside the borrower’s dwelling unit. Rental income from boarders is only acceptable if the borrower has a two-year history of receiving income from boarders that is shown on the tax return and the borrower is current…

• What is required to document a No Tax Returns, No W2, No 1099 borrower’s federal, state and local taxes?
  Lenders may use current pay stubs, tax tables, or federal, state and local tax returns from the most recent tax year, to document federal, state and local taxes. If the No Tax Returns, No W2, No 1099 borrower’s most recent tax return is more than two years old, the lender must estimat…

• Are copies of tax returns required for a Borrower with No Tax Returns, No W2, No 1099 self-employment or commission income?
  For self-employed Texas No Tax Return, no w2, no 1099, no paystub mortgage applicants, the Mortgagee must obtain complete individual federal income tax returns for the most recent two years, including all schedules. The Borrower’s business tax returns for the most recent two years must also be obtained unless the follo…

• What is required to document a No Tax Returns, No W2, No 1099 Mortgage  borrower’s self-employment income?
  The Mortgagee (lender) must obtain complete federal income tax returns, including all schedules. In lieu of signed individual or business tax returns from the HECM borrower, the Mortgagee may obtain a signed IRS Form 4506, Request for Copy of Tax Return, IRS …

• Can Boarder Income be considered effective income in qualifying a No Tax Returns, No W2, No 1099 Mortgage  borrower?
  Boarder refers to an individual renting space inside the HECM borrower’s dwelling unit. Rental income from boarders is only acceptable if the HECM borrower has a two-year history of receiving income from boarders that is shown on the tax return and the borrow…

• Are there special guidelines for No Tax Returns, No W2, No 1099 mortgage applicants who are employed by a family owned business?
  Family-owned Texas No Tax Return, no w2, no 1099, no paystub mortgage applicants income refers to employment income from a business owned by the borrower’s family, but in which the borrower is not an owner. The Mortgagee must verify and document that the borrower is not an owner in the family-owned business by usin…

Can disability payments be used for No Tax Returns, No W2, No 1099 as income?