By Mike Basti, President and Mortgage Broker · NMLS #322904You can get a no-tax-return mortgage in California using an alternative-documentation program: a bank-statement loan (deposits), a P&L loan (CPA statement), a 1099 loan, an asset-based loan (your assets), or, for rentals, a DSCR loan (the property's rent). These replace returns with other proof of ability to repay.
Why tax returns aren't always required
Federal ability-to-repay rules require lenders to verify income — but not necessarily via tax returns. Alternative-documentation programs verify it through deposits, a CPA P&L, 1099s, assets, or rental income instead.
Your no-tax-return options
- Bank statement — 12–24 months of deposits.
- P&L only — a CPA-prepared profit-and-loss statement.
- 1099 — qualify off 1099 income.
- Asset depletion — qualify on liquid assets.
- DSCR — for investment property, qualify on rent, not personal income.
What to expect
Roughly 10–20% down, a mid-600s+ score, and some reserves. Pricing on non-QM loans varies by program, credit and down payment, and can be competitive for borrowers who don't fit conventional guidelines. Your rate depends on credit, down payment and the lender, so we quote both side by side. We match you to the program that documents the most income at the best price.
What lenders look at instead of tax returns
- Bank statements: 12 or 24 months of deposits, with an expense factor applied to business accounts
- 1099 forms: for independent contractors
- A CPA-prepared P&L: for owners whose returns understate cash flow
- Liquid assets: divided over a set term in an asset-depletion loan
- Rental income: the property’s rent on a DSCR loan
Lenders still verify that you are self-employed, usually with a business license or CPA letter, and they still check credit, reserves and the property.
No tax return mortgage options at a glance
| Program | What you document instead of returns | Best for |
|---|---|---|
| Bank statement | 12 or 24 months of personal or business deposits | Business owners whose write-offs shrink taxable income |
| P&L only | A CPA- or tax-preparer-prepared profit & loss statement | Owners with a CPA and strong recent earnings |
| 1099 | 1099 forms for gross contract income | Independent contractors and commissioned earners |
| Asset depletion | Liquid assets divided over a set term | Retirees and high-net-worth borrowers |
| DSCR | The property’s rent | Real estate investors |
Across programs, expect roughly 10–20% down, a mid-600s or higher credit score, reserves, and proof you are self-employed (usually a business license or CPA letter). These are non-QM loans: they skip tax returns but still meet the federal ability-to-repay rule. Check the non-QM eligibility guide, or see how this works locally for self-employed borrowers in Los Angeles.
How long it takes
A no-tax-return loan typically closes in about 3–5 weeks, similar to a conventional loan. The biggest time saver is sending complete statements, every page of every month, at the start, along with explanations for large non-business deposits.
Is it more expensive?
Pricing depends on your credit, down payment and the program. As of October 2026, non-QM pricing has often been competitive for our clients, and the right program can let you qualify for the home you can actually afford. We compare 20+ lenders. Rates change daily, so call 949-379-5320 for a real quote.
From our own files: across 200+ self-employed loans Save Financial has closed since 2009, most borrowers had 720–780 credit and put 15–20% down, and the #1 reason a bank had declined them was that their tax returns showed too little income.
Frequently asked questions
Can I get a mortgage with no tax returns in California?
Yes — bank-statement, P&L, 1099, asset-based, and DSCR programs qualify you without tax returns.
Are no-tax-return loans the same as the old 'no-doc' loans?
No. These still verify your ability to repay — just through deposits, a P&L, 1099s, assets, or rent instead of returns. True no-documentation owner-occupied loans no longer exist.
What down payment do no-tax-return mortgages need?
Typically 10–20%, depending on the program, credit, and property.
Which no-tax-return program is best for me?
It depends on how you earn — deposits, contracts, assets, or rental income. We'll match you to the one that qualifies the most income.
Do no-tax-return mortgages need a bigger down payment?
Usually 10 to 20 percent on a purchase, depending on credit score, loan size and program. Larger down payments often get better pricing.
Can I refinance with a no-tax-return loan?
Yes. Bank statement, P&L and DSCR programs are available for rate-and-term and cash-out refinances as well as purchases.
What mortgage lenders don't require tax returns?
Non-QM lenders. They offer bank statement, P&L, 1099, asset-depletion and DSCR loans that verify income without tax returns. Most work through mortgage brokers, so a broker like Save Financial can compare several of them on one application.
Can I get an FHA or conventional loan without tax returns?
Generally no. FHA and conventional loans normally use tax returns to document self-employment income. If you want to skip returns, a non-QM program such as a bank statement or P&L loan is usually the path.
Can I get a mortgage without two years of tax returns?
Yes. No-tax-return programs do not use returns at all, and some bank statement lenders accept one year of self-employment if you worked in the same field before and the rest of the file is strong.