Last Updated on November 6, 2023 by Eric Jeanette
FHA Loan Without Tax Returns
There are many reasons why home buyers are unable to produce tax returns when applying for a mortgage. Sometimes there are delays in filing your taxes or other legitimate reasons for not having two years of tax returns at the time of your mortgage application.
It is possible to apply and get approved for an FHA loan without tax returns. However, you are still required to provide your W2s and other documents when applying for an FHA loan. If you are self employed, your options will be outlined below.
Minimum Required Documentation for an FHA Loan
If you are applying for an FHA loan with no tax returns, you will need the documentation referenced below.
- Social security number or card
- Driver’s license or some other form of ID
- Pay stubs for the past 30 days
- W2s for the past two years
- Bank Statements for the past two months
- Account statements for any other liquid financial accounts (ie stock portfolio and retirement accounts)
- 1003 loan application
- Form HUD-92900-A – this is an addendum to the 1003 loan application
- Written verification of employment
- Credit report
- Sales contract for purchases
- Copy of the deed for refinances
This is the standard documentation required for FHA loans. You can read more about the FHA loan requirements here.
Other Requirements to Qualify for an FHA Loan
Once you are past the tax return issue, there will be other requirements you must meet to be approved for an FHA loan.
- Must be a US Citizen with a valid social security card
- Two years of employment
- Enough income to qualify for the mortgage amount requested
- Meet the FHA credit score requirements
- The home being purchased must be your primary residence
To understand what else may be needed, read our FHA Loan Requirements article.
Self Employed Borrowers Without Tax Returns
Self employed applicants are going to have a tougher time qualifying for a mortgage without tax returns because they do not have W2’s as additional proof of income. If you are a 1099 contractor, then you could qualify by providing those 1099’s you received.
Most self employed individuals have a difficult time qualifying for a mortgage even if they do provide tax returns. All of the legitimate business write offs make it difficult to show enough income. There is a mortgage program called a bank statement loan which will allow you to qualify simply by providing 12 months of bank statements.
Steps to Get Approved for an FHA Loan Without Tax Returns
First, you should speak with a loan officer regarding your tax return issue. Contact us so we can help begin that conversation.
Next, provide your income information and a loan officer can check that against your debt to determine how much you can qualify for. Or, you can check yourself using our home affordability calculator.
Then, complete the FHA loan application in full providing all of the information requested. Incomplete loan applications will just delay the process.
Finally, provide the remaining documentation that your loan officer is requesting to complete the application process.
Once you have completed these steps, you should get a pre-approval from your lender within 48 hours.
Read [W2 only Mortgage Options]
Can you get an FHA loan without a W2?
If you do not have a W2, then you can provide your tax returns to qualify for a mortgage. Problems will arise when you do not have W2s or tax returns. Bringing just pay stubs will not be enough.