No Income Documentation Mortgage

We've added a new loan program, and it asks for less paperwork than anything else I offer. You can qualify for a mortgage with no income documentation and no employment documentation: no tax returns, no W-2s, no pay stubs, and no call to your employer.

It isn't for everyone, and it costs more than a conventional loan. But for the right borrower, it's the difference between buying now and spending another year fighting with a document checklist.

The short version:

You qualify on your credit, your equity and your cash reserves, not your income.
Purchases go up to 80% loan-to-value and cash-out refinances up to 75%, for borrowers with strong credit.
Minimum credit score is 640. Loan amounts run from $100,000 to $3,000,000.
Plan on at least six months of payments in reserves after closing.
U.S. citizens, permanent residents and many visa holders with U.S. credit can qualify.
Primary residences and second homes only. Rental properties go through our DSCR program instead.
The rate is higher than a conventional loan. If your paperwork already works, the conventional loan is usually the better deal.

Terms are as of October 12, 2026 and subject to change without notice.

What "no income, no employment" means

On a typical mortgage, the lender proves your income with a paper trail: two years of tax returns, W-2s, recent pay stubs, and a verbal check with your employer a few days before closing. If any piece doesn't line up, the file stalls.

This program skips that whole stack. We don't document what you earn, and we don't verify where you work.

Instead, the decision rests on three things:

Your credit history. How you've handled debt is the clearest evidence of how you'll handle this one.
Your equity. Your down payment on a purchase, or the equity you keep in the home on a refinance.
Your reserves. Money still in the bank after closing.

Strong credit, real money in the deal, and a cushion afterward. That's what qualifies you here.

How it differs from a bank statement loan

People mix these up, so it's worth being precise. A bank statement loan still documents your income. It uses 12 or 24 months of deposits instead of tax returns, and the underwriter calculates a monthly income from them.

This program doesn't calculate income at all. If your deposits are irregular, mixed between accounts, or hard to explain, a bank statement loan may still struggle with your file. This one doesn't look at them for income.

It's also different from a DSCR loan, which I wrote about in No Income? No Problem. DSCR qualifies an investment property on its rent. This program is for a home you live in or a second home.

Who it fits

The income is real, but it's hard to prove or hard to explain on paper. A few borrowers I see this for:

Self-employed borrowers whose tax returns show a much lower number than they actually live on, because their accountant did their job well.
Business owners with uneven pay, where one strong year and one slow year average out to something that doesn't qualify.
Retirees living on savings and investments, who have the assets but no paycheck.
People between jobs or changing careers, with a strong balance sheet and a gap in their work history.
Borrowers with several income sources that are each legitimate and together too complicated to document cleanly.
Visa holders and newer arrivals with U.S. credit and savings, whose income history in this country is short or hard to document. Permanent residents and non-permanent residents with an acceptable visa are eligible.

If you've been told "your paperwork doesn't work" by a conventional lender, this is one of the first places I'd look. It's one of several non-QM options, and part of my job is telling you which one fits.

The terms

Your credit score sets how much you can borrow against the home's value. For loans up to $2,000,000:

Credit score	Purchase or rate/term refinance	Cash-out refinance
740 and up	up to 80%	up to 75%
720–739	up to 80%	up to 70%
660–719	up to 75%	up to 65%
640–659	up to 65%	up to 60%

Loans from $2,000,001 to $3,000,000 need a 660 score or higher, and the cash-out limits are a little tighter.

The rest of the program:

Loan amounts: $100,000 to $3,000,000.
Loan types: fixed rate, plus 7/6 and 10/6 adjustable-rate options. No interest-only. No prepayment penalty.
Occupancy: primary residence or second home. No investment properties.
Property types: single-family homes, townhomes, condos (including many non-warrantable condos), 2–4 unit properties, modular homes, rural properties and log homes, on up to 20 acres.
Seller help: the seller can contribute up to 9% toward your costs.
Escrow: taxes and insurance are paid through an escrow account on every loan.

Your exact numbers depend on your score and the rest of the file, and the loan-to-value can be lower in a market the appraiser marks as declining. Call me and I'll tell you where you land before you spend money on an appraisal.

Two notes for Texas, since we lend there. First, this program doesn't offer cash-out on a Texas primary residence. Texas puts its own rules on home-equity borrowing under Section 50(a)(6) of its constitution, and this program doesn't do those loans. Second, gift funds from family can go toward your down payment, which helps many buyers get there.

What I'll still ask you for

Less paperwork doesn't mean no paperwork. This is the list that keeps the program sound:

Government-issued ID and a standard loan application
A credit report, with a 640 minimum and an established credit history (generally two accounts open at least a year, or one open at least two years)
A clean recent housing history: no late mortgage or rent payments in the last 12 months
Your down payment, with a paper trail showing where the money came from. Gift funds from family can cover all of it.
Reserves: six months of payments at 75% loan-to-value or less, nine months above 75%, plus two more months for first-time homebuyers. Gift money can't count toward reserves. On some larger cash-out refinances, part of the reserves can come from the cash-out itself.
An appraisal, like any other mortgage (two appraisals on loans of $2,000,000 or more)
A homebuyer counseling session, which the program requires at least one borrower to complete. It takes about an hour, and most people find it useful.

No tax returns. No W-2s. No employer phone calls. Everything above, yes.

What it costs compared with a conventional loan

The rate is higher. You're trading documentation for price, and the investor behind this program charges for taking on a thinner file. How much higher moves with the market, so I won't print a number here that will be out of date next week. I'll give you the real monthly payment difference for your situation in one phone call.

I tell every borrower the same thing: if your tax returns and pay stubs cleanly support the income you need, take the conventional loan and keep the lower rate. This program is for the people the conventional checklist doesn't fit, not a shortcut around it.

If your score is close to 640, it may also be worth a few months of work before you apply. A higher score can mean a better rate and more room on loan-to-value. Here's how to improve your credit score before a mortgage.

Common questions

Can I really get a mortgage with no income documentation?

Yes. This program requires no tax returns, no W-2s, no pay stubs and no employment verification. You qualify on your credit history, your down payment or equity, and your cash reserves.

Is this the same as a bank statement loan?

No. A bank statement loan still documents your income using 12 or 24 months of deposits. This program doesn't document income or employment at all.

What's the minimum credit score?

640 for loans up to $2,000,000, and 660 above that. Higher scores qualify for higher loan-to-value, up to 80% on purchases and 75% on cash-out refinances, and better pricing.

How much do I need for a down payment?

At the best terms (a 720 score or higher), plan on at least 20% of the purchase price. With a score between 640 and 659, plan on 35%. Gift funds from family can cover the down payment.

Can I do a cash-out refinance?

Yes, up to 75% of your home's value with strong credit. The exception is a primary residence in Texas, where this program doesn't offer cash-out.

Can I use it for an investment property?

No. It's for primary residences and second homes. For rental properties, our DSCR program qualifies the property on its rent instead.

What's the largest loan available?

$3,000,000. The smallest is $100,000.

Do I need money left over after closing?

Yes. Plan on six months of mortgage payments in reserves at 75% loan-to-value or less, and nine months above that. First-time homebuyers need two more months. Gift funds can't be used for reserves.

Can first-time homebuyers use this program?

Yes. First-time buyers need two extra months of reserves, and the homebuyer counseling session is required on every loan in this program anyway.

Can I qualify on a visa?

Often, yes. U.S. citizens, permanent residents and non-permanent residents with U.S. credit and an acceptable visa are eligible. Tell me your visa type and I'll confirm.

I had a bankruptcy or foreclosure. Can I still qualify?

Possibly, if enough time has passed. A bankruptcy, short sale or deed-in-lieu generally needs four years from discharge or completion, and a foreclosure needs seven.

Are the rates higher than a regular mortgage?

Yes. Less documentation means a higher rate. Call for today's pricing and a side-by-side monthly payment comparison with a conventional loan.

Are these loans legal?

Yes. They're non-qualified mortgages, or non-QM loans, made by licensed lenders. "Non-QM" means the loan falls outside the government's standard "qualified mortgage" checklist. It doesn't mean unregulated. Federal rules still require the lender to make a good-faith judgment that you can repay, which is why credit, equity, reserves and counseling carry so much weight in this program.

How long does it take to close?

It depends on the file, the appraisal and how quickly your down payment documentation comes together. Less paperwork can help, but no timeline is guaranteed. Call me and I'll give you a realistic estimate for your situation.

Wondering whether this fits your situation? Call me directly at 630-301-8823, the office at 630-357-1600, or email bsaggar@absmtg.com. I'll tell you which program fits, including when it's the conventional loan.

Program terms are as of October 12, 2026 and subject to change without notice. Loan-to-value, loan amount and pricing depend on credit score, property type, occupancy and other factors. Rates on this program are higher than on conventional loans. Not available for investment properties. Cash-out refinance not available on Texas primary residences under this program. This is not a commitment to lend; all loans are subject to credit approval and program guidelines.

No Income Docs, No Employment Docs: A New Way to Qualify for a Mortgage