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# Can You Get a Mortgage Without Tax Returns? No-Ratio, Bank Statement, DSCR, and Construction Loans Explained
- URL: https://www.mortgagemomradio.com/can-you-get-a-mortgage-without-tax-returns-no-ratio-bank-statement-dscr-and-construction-loans-explained/
- Published: 2025-09-24T21:25:15.000Z
- Updated: 2026-09-04T17:10:05.000Z
- Description: Self-employed, paid in crypto, or moving before you've found the new job? Debbie tours the loan programs most borrowers never hear about — no-ratio loans with zero income docs, bank statement loans, DSCR loans that qualify on the property's rent, and construction financing that beats hard money.
- Author: Deborah Marcoux
- Tags: Podcast, Mortgage Mom Radio, #episode-backfill

Mortgage Mom Radio • Live show from Wednesday, September 24, 2025: “Loan Programs You Didn't Know Existed!” • 49 minutes • Hosted by Debbie Marcoux, NMLS #237926

Self-employed and writing everything off? Paid in crypto? Moving states before you've found the new job? There's a loan for that — several, actually. In this episode Debbie tours the programs most borrowers have never heard of: the no-ratio loan (no income documentation at all, even on a primary residence), bank statement loans for the self-employed, DSCR loans that qualify on the property's rent instead of your paycheck, and construction and renovation financing that beats hard money on both rate and leverage. For each one: who it's for, what it takes to qualify, and what it honestly costs.

## Key takeaways

- **No-ratio loans: no income docs, period — on a primary residence.** No W-2s, no pay stubs, no tax returns, not even an employer name on the application. Qualify with 720+ credit and 20% down, or 680+ and 25% down, plus six months of reserves (660 possible by exception, expect \~30% down and 12 months reserves). Loan amounts to $2 million. The price of no verification: Debbie's sample quote was 8.875% (680 score, 25% down — week of September 24, 2025, an example, not a quote).
- **Bank statement loans are the self-employed workhorse.** 12 or 24 months of business or personal statements; lenders typically count 50% of income deposits (up to \~70% with a CPA letter documenting low overhead). Minimum one year self-employed — two-plus years prices better — and down payments start at 10%. Rates ran roughly 6.875%–7.75% depending on credit, down payment, and occupancy (same as-of caveat).
- **DSCR loans qualify the property, not you** — investment properties only. The rents are measured against the full payment (principal, interest, taxes, insurance, HOA). The property does *not* have to fully cash-flow to qualify; short rents just mean a higher rate. Figure 20% down minimum and a 700+ credit score (680 by one-off exception).
- **Airbnb/VRBO income only counts with a paper trail.** With 12 months of short-term-rental history from the seller, that higher income can qualify the deal (and you may get the place furnished with cleaners and management in place). No history? The appraiser's long-term rent comps set the number.
- **Construction and renovation money exists beyond hard money.** Debbie's programs are business-purpose (build/renovate to flip or rent, including rescuing a half-finished build): no income docs, 720+ credit, reserves to carry payments during the build — and up to about 80% of total project cost, versus hard money's 50–60% loan-to-value at 10.5%–12%. For primary-residence construction, she refers borrowers out (US Bank has a strong program).
- **Every one of these works for refinances too** — including cash-out on a primary residence through the no-ratio program when W-2s or tax returns won't get you there.
- **Buying rather than refinancing? Ask about the 2-1 buydown** — no first-time-buyer requirement, available on primary, second homes, and investments: two years of stepped-down rates before settling at the note rate.

## Chapters

- 02:00The 2-1 buydown, updated to current levels
- 03:00Today's menu: the programs nobody knows about
- 05:00No-ratio loans: no income docs on a primary residence
- 08:00Who it's for: the Bitcoin client, the state-to-state movers
- 09:00Credit, down payment, and reserve requirements
- 11:00What it costs — and why risk sets the rate
- 13:00Q&A: a 15-year refinance rate check
- 15:00Bank statement loans for the self-employed
- 16:0012 vs 24 months of statements
- 18:00Which deposits count: the 50% / 70% rule
- 20:00Q&A: how long you must be self-employed
- 22:00Bank statement vs no-ratio: rates compared
- 25:00DSCR loans: qualifying on the property's rent
- 28:00Airbnb/VRBO income vs long-term rents
- 37:00Construction and renovation: beating hard money
- 41:00Reserves, exceptions, licensing, and wrap-up

## Questions answered on this show

### “Do you have to be a first-time buyer for the 2-1 buydown?”

No. There's no first-time-buyer requirement at all — you can use a 2-1 buydown on a primary residence, a second or vacation home, or an investment property. It's a purchase tool: the first year prices two points below the note rate, the second year one point below, then years three through thirty run at the note rate.

### “What's the rate on a 15-year term with 20% down?”

It depends on the whole scenario — a purchase, a rate-and-term refinance, and a cash-out each price differently, and credit score moves the number. As a reference point from a few days before the show: a 15-year rate-and-term refinance at around a 700 credit score was pricing roughly 5.5%–5.625% (as of late September 2025 — an example, not a quote). For your exact scenario, Debbie will run it with you one-on-one.

### “How long do you have to be self-employed to qualify for a bank statement loan?”

One year minimum — some lenders will close with just 12 months of self-employment, and Debbie's team has done it. Expect a slightly higher rate than a borrower with two-plus years of history; risk always prices in. If you own multiple businesses, each business whose income you want counted needs at least 12 months of operation, verified through its bank statements and your CPA — income from a younger company can't be used.

### “How would I qualify for an investment property that was never a rental?”

The appraisal answers it. Every loan gets an appraisal, and on an investment purchase the appraiser also researches comparable rents — based on long-term, 12-month leases — and that market rent is what the DSCR analysis uses. Planning short-term rental income instead? It only counts if the property has an actual 12-month operating history; otherwise you're qualified on the long-term comps, and the Airbnb upside is yours to prove after closing.

### “How much in reserves do I need for a no-ratio or DSCR loan?”

Six months of the full monthly payment (principal, interest, taxes, insurance, plus HOA dues if any) for both, in liquid funds beyond your down payment and closing costs. On the no-ratio program that applies at 720/20% down or 680/25% down; drop below 680 and the exception desk will want more like 12 months. On DSCR, six months is the floor — showing 12 or 24 months of reserves can unlock a better rate with certain investors, so more reserves can literally buy a lower rate.

### Find the program that fits how you actually earn

Call [844-935-3634](tel:8449353634) (844-WE-LEND-4), [start an application](https://www.mortgagemomradio.com/apply/), or run your numbers with the [mortgage calculators](https://www.mortgagemomradio.com/tools/). Get the weekly rate rundown in the [newsletter](https://www.mortgagemomradio.com/newsletter/).

Full transcript (lightly edited for clarity) 

*Auto-generated captions cleaned for readability. Sponsor messages, commercial breaks, and repeated housekeeping have been trimmed; licensing information appears at the bottom of this page.*

### First, a correction on the 2-1 buydown numbers

Welcome to Mortgage Mom Radio. I'm Debbie Marcoux, the Mortgage Mom. This is an interactive show — put your questions into the feed and I'll read them out loud and answer them for you.

The commercial that ran before the show talks about the 2-1 buydown program, and it really is a fabulous program for somebody purchasing a home — but that recording is from May of 2024, so the rates in it are stale. Where it says 7%, 6%, 5%, today we're truly talking more like 6½%, 5½%, 4½%. The structure is the same: your first year prices two points below the note rate, year two one point below, and years three through thirty at the note rate. If you're purchasing and want to know how to take advantage of a 2-1 buydown, call me and let's talk it through.

Today we're talking about loan programs a lot of people don't know exist: no-ratio loans, construction loans — both ground-up and renovation — and debt service ratio loans. There are all kinds of programs for the standard buyer who wants to put little money down — down payment assistance, 3% down, 5% down — and we talk about those frequently. Today is the out-of-the-box stuff.

Mary asks whether you have to be a first-time buyer for that buydown loan: no, you do not. You can get the same program on an investment property, a second home or vacation property, or a primary residence — no first-time-buyer requirement at all.

### No-ratio loans: no income documentation on a primary residence

Let's start with the no-ratio loan — a no-income-qualifying loan for a primary residence. Not very many lenders can offer this program. And understand the contrast with hard money: you *can't* get hard money on a primary residence — hard money is business-purpose only, for investment properties, fix-and-flips, that world. Hard money also comes with much lower loan-to-values: on a $500,000 purchase you're probably putting down somewhere around 30%, and for construction projects more like 40%–60% down.

On the no-ratio program, think about what the investor is taking on. They are not checking your W-2\. They're not looking at pay stubs, not looking at tax returns if you're self-employed, not verifying where you work — we don't even put the name of your employer on the loan application, and no phone call is made to confirm you're employed. That is a lot of risk, and with risk comes a higher interest rate. Somebody willing to give you money without verifying any information is going to charge you more for it. It just happens.

But it is a way into a property. Right now I've got a client who is a perfect candidate: he's into Bitcoin, makes his money in Bitcoin, and puts everything he makes right back into Bitcoin except small amounts for bills. No tax returns showing capital gains, no tax returns showing income — there's no way for us to verify income. Perfect candidate. Another one: people leaving their state — most of them California — who want to sell, pack the truck, go get settled, buy the house, and *then* find the job. No employment to verify yet? Perfect candidate.

What it takes: a 720 or better credit score with 20% down, or a 680 or better with 25% down — each with at least six months of reserves. They can do a 660, but only on exception — there's no written guideline, and the ones I've seen come back wanting around 30% down and bigger reserves. Reserves means the total monthly payment — principal and interest, property taxes, homeowners insurance, and HOA dues if they exist. If the payment is $5,000, six months is $30,000 of liquid money on top of your down payment and closing costs.

The interest rate I ran yesterday with a 680 credit score and 25% down on this program was 8.875%. Yes, that's expensive — you're going to pay for this program, because the investor wants more return for the risk. But compare it to the alternative people reach for: hard money averages 10½%–12% with bigger down payments, can't touch a primary residence, and is business-purpose only. This program is for an owner-occupied property and goes up to a $2 million loan amount. You bring the down payment, closing costs, reserves, and credit — and nothing else gets verified. Pretty good, if you ask me.

Michelle asks what the rate is on a 15-year term with 20% down — on a purchase, owner-occupied, with full documentation. Everybody gets a different rate: a refinance prices differently from a purchase, and a cash-out differently from a rate-and-term. I can tell you it's in the fives — I ran a 15-year rate-and-term refinance a couple of days ago around a 700 credit score and it was about 5½% to 5.625%. Michelle, text or email me after the show and we'll run your exact scenario together. That goes for anybody: text me, email me, call me, and I'll tell you exactly where you'd be.

### Bank statement loans: made for the self-employed

Bank statement loans are fabulous, and they are made for the self-employed borrower — if you're not self-employed, you don't qualify for one. We look at your business bank statements or your personal ones, depending on how your business runs: some people have a C corp or an S corp, others an LLC, and some are sole proprietors filing a Schedule C out of a personal account.

We'll look at anywhere from 12 to 24 months of statements. Why one over the other? The look-back runs from the application date, not January to January — it's September 24, so 12 months means August 2024 through August 2025\. If your business hit a rut at the start of that window but was prosperous before and has recovered since, we'd want 24 months to get the better average.

How the income works: we count deposits that are income-generated. If you're a contractor who bought supplies at Home Depot, did the job, and returned the extras, the refund deposit doesn't count — but the full job deposit does, including what the client reimbursed you for supplies. One-off deposits — a tax refund, anything that isn't income — don't count. Then we take the qualifying deposits and give you 50% of them. That's the standard. Some industries get more: somebody in marketing sitting behind a desk with very little overhead can get 70% of deposits, based on a letter from their CPA stating the overhead is only around 30%. It depends on who you are and what you do — but it's very simple, and it's really good for the self-employed borrower who writes off as much as possible and can't qualify off tax returns.

Why Not asks how long you need to have been self-employed: some lenders allow 12 months, and we have closed those loans. You'll get a slightly higher rate than somebody with two or more years — risk again — but one year is the minimum. And if you have a couple of businesses — we love you, you're an entrepreneur — each business has to have been operating at least a year, verified through its statements and your CPA; income from one that's younger than 12 months can't be used.

On pricing, bank statement loans are far cheaper than no-ratio: instead of 8.875%, you're looking at roughly 6.875% up to about 7½% on a primary residence — 6.875% being high credit score with 25% down, around 7½% with 10% down, maybe 7¾% with 10% down and a 680 score. Investment property adds more: about 7½%–7¾% with the minimum 20% down, improving to around 7¼% with 25% or more down. Credit score, down payment, time in business, occupancy, property type — single family, condo, 2-to-4 unit — all move the number. Down payments on the bank statement program start at 10%; the no-ratio program starts at 20%.

### DSCR loans: qualify on the property's rent, not your income

Now the debt service coverage ratio loan — DSCR. This is for somebody who can't qualify with bank statements, W-2s, or pay stubs — and it is for an *investment property only*. Not a primary residence, not a second home. What we're looking at is the income the property can achieve as a rental: what are common rents for the area, and what will the property bring in monthly against the principal, interest, taxes, insurance, and HOA?

Here's the misconception: a lot of people believe the property has to rent for enough to cover the whole payment or it won't qualify. Not true. If the rents come up short, you can still get the loan — the interest rate is just going to be significantly higher, because now we're not verifying your income *and* the property's rents won't carry the nut. But the programs exist. Don't assume it can't be done because the rents aren't there.

On requirements: single-family investment DSCR starts at 20% down, with credit scores of 700 or above. At 680 I might have an investor or two who would consider it on exception, but it's a one-off — call me and I'll make calls.

### Airbnb and VRBO income vs long-term rents

Now, short-term rental income — because I hear it constantly: “Yeah, but Deb, I'm going to Airbnb this thing. A long-term tenant pays $3,000 a month; short-term I'll make five or six.” And there's a good chance you might. First, a reality check from my clients who've done it: several ran Airbnbs and VRBOs and switched back to traditional 12-month rentals — the weekend damage, the bachelor and bachelorette parties, the turnover work got to be too much, while a long-term renter treats the place like home. But the short-term income potential is real.

Here's how underwriting sees it. If the property you're buying has a history as a short-term rental — the seller has been running it on Airbnb or VRBO — and we can get a report of the last 12 months of income, we can average it and use that higher number to qualify, which gets you better terms and a lower rate because the income covers the payment. If there's no history, there is nothing for the underwriter to verify, and they will not let you use projected short-term income; we use the average long-term rent the appraiser reports for that market.

So if you're shopping specifically for a short-term rental, try to buy one that's already operating as one. You get the income history for qualifying — and for your own diligence. You can probably negotiate to buy it furnished. And the seller likely has the cleaning company and management already set up, so you step into a streamlined operation. Can you buy a property that's never been a short-term rental and build it from scratch? Gosh darn it, yes you can — somebody had to be first. I'm just telling you the easier path.

Blanca asks how you'd qualify for an investment property that was *not* a rental: the appraisal covers it. We do an appraisal on every property we lend on, and for an investment purchase we ask the appraiser to research the average rental income for that property — comps based on long-term, 12-month rentals — and that's the number we use.

And note: I've been saying purchase, purchase, purchase this whole show, but everything here works for refinances too. Investment property refinance? DSCR or bank statement product. Need cash out of your primary residence but the W-2s and tax returns won't qualify you? The no-ratio program can be the way to get you the cash you need.

### Construction and renovation: what exists beyond hard money

Last but not least: construction and renovation. You were mid-renovation and ran out of funds. You want to buy a lot and build. These programs exist. The full construction product I have is for an investment property or a fix-and-flip — build it or renovate it, then flip it, rent it, or sell it as a spec home. It is *not* for a primary residence. For primary-residence construction, talk to your contractor about who they've worked through — I have sent numerous people to US Bank, which has a great construction program for the person who's going to build it and live in it.

For the business-purpose programs: no W-2s, no tax returns, no income documentation at all. Their biggest concern is reserves — enough money in the bank to carry the payments while the project is being built — and credit, 720 and above. You could pick up something somebody else started — framed and abandoned when the builder ran out of money — buy it, finish it, flip it or rent it. And the leverage is the point: if your land costs $100,000 and the build costs $400,000 — $500,000 all-in — hard money at 50%–60% loan-to-value gives you maybe $250,000–$300,000\. This program goes up to about 80% of your total project cost. A lot of people don't know it exists, and it's a better option than hard money.

One more from the feed — reserves for no-ratio and DSCR: six months for the no-ratio at 680/25% down or 720/20% down; below 680 on exception, expect them to want more like 12 months. On DSCR, a minimum of six months — and if you've got 12 or 24 months of reserves, one investor may price you better than another that only requires six. I've got probably ten investors doing DSCR, two doing no-ratio, and about fifteen doing bank statement loans. If I can't underwrite it in-house, I'm still going to try to find a home for you — and if you don't fit the parameters I've given, reach out anyway. Maybe we improve the credit score first; maybe your industry gets you 70% of deposits instead of 50%. You have to start with a road map, and once you know what you need, it's much easier to execute.

On states: I'm personally licensed in Arizona, California, Florida, Georgia, Hawaii, Idaho, Illinois, Nevada, North Carolina, Oregon, Tennessee, Texas, and Washington — and the company I work for is licensed in many others, so I can refer you to a loan officer in my company family, or elsewhere, if you're looking in a state I can't cover.

### Wrap-up

We're at about 46 minutes, so I'm going to stop it there — this was a great show, and I appreciate all the questions. If you're thinking about buying, selling, refinancing, a reverse mortgage, a home equity line of credit, hard money — whatever it is — think Mortgage Mom Radio. Call 844-935-3634, that's 844-WE-LEND-4; go to mortgagemomradio.com; or email debbie@mortgagemomradio.com. It is always me who responds — and if it's one of the girls from my team, everything still comes through me and I see everything. If you want to know when I go live without depending on YouTube notifications, text the word LIVE to 844-935-3634\. I'll be back right here at 1:00 p.m. Pacific next Wednesday. Talk to you all real soon. Bye-bye.

Debbie Marcoux is licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act, NMLS ID #237926, and additionally licensed in AZ (0941504), FL, GA, HI, ID, IL, NV, NC, OR, TN, TX, and WA. Rates and figures discussed were current as of the air date of September 24, 2025, reflect national conforming averages, and are not an offer of credit or a rate quote. Debbie Marcoux is not a financial advisor; consult qualified professionals about your individual situation.