Specialty Loans
No Tax Returns / Bank Statement
Self-employed or non-traditional income? Income documented through bank statements.
If you're self-employed, a freelancer, a real estate agent, or a business owner whose tax returns show heavy deductions, bank statement loans let your deposits tell the real story. These are full-recourse mortgages — just with smarter income documentation built for people who write off legitimate business expenses.
Key Features
- • 12 or 24 months of bank statements instead of tax returns
- • Personal or business accounts accepted
- • 1099-only qualification available
- • Asset-depletion programs for retirees
- • Purchase, rate-and-term refi, and cash-out options
- • Down payments from 10%
How it works
These are non-QM loans — outside the Fannie/Freddie box, funded by portfolio investors who underwrite to common-sense documentation. The lender averages your monthly deposits (with adjustments for transfers, refunds, and one-time items) over the program window to calculate qualifying income. That number replaces what would normally come off your tax returns. Otherwise the loan looks like a standard mortgage: full appraisal, title, credit, DTI under 50%.
What this looks like in Washington
WA has a huge self-employed population — Seattle and Eastside tech contractors with single-member LLCs, real estate agents across King and Snohomish, restaurant and retail owners on Capitol Hill and in Tacoma, construction subs in fast-growing Pierce and Spokane markets, and gig workers everywhere. For all of them, bank statement loans are often the only way to actually buy in a high-cost market without showing artificially deflated income. WSHFC down payment assistance doesn't pair with non-QM, so private gift funds and seller credits are usually the down payment strategy.
Pros
- • Qualify without tax returns
- • Deposits = income, not adjusted gross income
- • Purchase, refi, and cash-out all available
- • Multiple program types to compare
Cons
- • Rates 0.75–1.5% above conventional
- • Higher reserve requirements
- • Tighter LTV caps on cash-out
- • No WSHFC DPA pairing
Best for: WA self-employed, 1099 contractors, real estate agents, and business owners whose tax returns understate true cash flow.
Common Questions
Related Loan Types
Popular WA markets for No Tax Returns / Bank Statement
Bank-statement loans for WA's self-employed — tech contractors, real estate agents, small business owners, and 1099 workers across every major metro.