No Income Mortgages: Get Qualified Without Income Documentation

Most mortgage lenders operate on one traditional principle: if they can’t document your income, they can’t prove you can repay the mortgage. That’s the entire basis of traditional underwriting. It has nothing to do with whether someone is successful, responsible, or financially capable — it’s simply a rules-based system that requires income on paper.

The problem is that real life doesn’t always produce clean tax returns or predictable W‑2 income. Entrepreneurs reinvest heavily in their companies. Investors carry multiple properties that look like “debt” on paper even when they cash flow. Some borrowers live off distributions, equity events, or irregular compensation. Others are between roles, selling a business, or simply had a write‑off‑heavy tax year.

If you have millions in assets, you can often pivot to an asset depletion mortgage, where your portfolio is converted into qualifying income. But if your asset levels are strong — just not high enough for traditional asset depletion — or if your finances don’t fit neatly into that model, a no income mortgage loan becomes the straightforward alternative.

This guide breaks down how a no doc mortgage aka no income mortgage or no ratio loan works, who benefits the most, what lenders actually look for, the risks you should understand (and how to overcome them), and how they compare to bank statement, asset depletion, and DSCR loans.

This is everything you need to know to see whether a no income mortgage is the missing link between you and homeownership.

What Is a No Income Mortgage?

A no doc mortgage (also known as a no income mortgage or no income verification mortgage) is a home loan that does not require a debt-to-income ratio (DTI) to be calculated. The lender does not review your income, your debts, or your tax returns. Instead, approval is based on:

• Credit score
• Liquid assets
• Down payment
• Property characteristics

This structure allows borrowers to qualify without income documentation—a huge advantage for anyone with complex finances, high write-offs, or variable earnings.

These are non-QM loans, meaning they fall outside traditional Fannie/Freddie guidelines and can be more flexible—particularly for jumbo loans.

The simplest way to put it: A no income mortgage loan lets you qualify based on your financial strength, not your tax returns.

Who Uses a No Income Mortgage? (And Why It Works Perfectly for Them)

Self-Employed Borrowers With Aggressive Write-Offs

If you’re an entrepreneur, your tax return is designed to reduce your taxable income—not to impress a mortgage underwriter. Traditional loans punish you for doing what every smart business owner does.

A no income mortgage removes that penalty completely.

High-Net-Worth Borrowers With Low Reported Income

If most of your wealth is in investment accounts, crypto, LLCs, trusts, or deferred compensation, your AGI often looks artificially low.

A no income mortgage loan focuses on assets, not pay stubs.

Real Estate Investors With High Paper Debt

Each property you own inflates your DTI on paper—even if the cash flow is strong. A no income mortgage doesn’t care about DTI at all.

Jumbo Buyers in High-Cost Markets

Big loans require even bigger documentation. A no income mortgage jumbo loan bypasses the most painful part of the process: proving income to the penny.

Borrowers in Transition Years

Recent divorce, career change, sabbatical, retiring early, living off savings? A no income mortgage loan lets you buy even during life’s in-between seasons.

How a No Income Mortgage Actually Works

Despite the name, “no income mortgage” doesn’t mean “no requirements.” It means the requirements are based on financial stability, not tax forms.

Here’s what lenders actually care about:

1. Credit Score

Most lenders want 700+, though some go as low as 680 depending on the program. Certain no income mortgage products allow FICO scores beginning at 680, with stronger pricing above 700. This helps borrowers who have solid credit but may not be perfect on paper.

2. Down Payment

Expect at least 20% down for most no income mortgages.

Because income isn’t being verified, lenders rely more heavily on borrower equity to offset risk. Many programs cap loan‑to‑value ratios around 80%, which aligns with standard no income mortgage underwriting.

3. Assets

You’ll need enough assets to cover:

• The down payment
• Closing costs
• Post‑closing reserves (often 6–9 months of payments)

Most lenders also require 30 days of asset seasoning, meaning the funds simply need to be in your account for at least one month. Some programs even allow cash‑out proceeds to count toward reserves, giving borrowers more flexibility. Accepted assets include bank statements, brokerage accounts, retirement funds, and in many non‑QM programs, even crypto balances held on regulated exchanges.

4. Employment (Sometimes)

Some lenders require a simple verification of employment — not income. Others don’t require employment to be listed at all. In fact, at LendFriend Mortgage we work with lenders with no income mortgage programs that allow employment to not be stated on the application entirely. The loan is approved based on credit, assets, reserves, and down payment strength — not job title or employer. 

5. Property Type

Most no income mortgage loans work for primary residences ONLY, but with loan amounts up to $2M, that primary residence can be a jumbo loan or a conventional loan. Condos, single‑family homes, and multi‑units all qualify with the right lender.

What This All Means

When blended together, these requirements show exactly how a no income mortgage works in practice: the lender evaluates creditworthiness through assets, reserves, down payment, and credit, rather than income or DTI. As long as the borrower demonstrates financial strength in those areas, income truly doesn’t factor into the approval process.

These requirements show the real spirit of no-ratio underwriting: the lender is judging the borrower’s overall financial strength, not their tax strategy or pay structure. As long as the borrower has strong credit, enough assets, and meaningful skin in the game, income simply isn’t part of the approval process. 

What a No Doc Mortgage Doesn’t Require

Here’s where it gets fun.

A no income mortgage loan does not require:

• Tax returns
• W-2s
• Pay stubs
• Business P&Ls
• IRS transcripts
• Debt-to-income calculations

Nothing. None of it.

Your income stays private. Your tax strategy remains your tax strategy.

The Biggest Advantages of a No Doc Loans

You Get Approved Based on Your Assets

Borrowers with millions in assets shouldn’t be denied because their AGI is low. A no income mortgage fixes that.

Faster Closing

No income underwriting = fewer conditions = quicker closings.

Perfect for Jumbo Loans

High-cost markets require flexible financing. A no income mortgage jumbo loan lets you buy at higher price points without the friction of proving income.

Privacy

Some borrowers simply don’t want to disclose their income. This is the cleanest legal workaround.

The Drawbacks (And How to Overcome Them)

Higher Interest Rates

Non-QM loans come with slightly higher rates. Expect 2-3% above conventional mortgage rates (whereas asset depletion rates are the same or slighlty above conventional mortgage rates (depending on the program).

But you overcome this through:

• Refinancing later
• Buying at better prices while inventory is high
• Negotiating seller credits

Larger Down Payments Required

You’ll need more skin in the game. But for most no income mortgage borrowers, assets are the easy part.

Limited Lender Options

Big banks won’t touch these loans. You need a mortgage broker with access to the non-QM market.

No Income Mortgage vs Bank Statement vs Asset Depletion vs DSCR

No ratio loans sit in the same ecosystem as other alternative‑documentation mortgages, but each program solves a different problem — and they are not interchangeable. In fact, anyone considering a no income mortgage should always check if they qualify for asset depletion first, because asset depletion typically offers better pricing, lower rates, and more flexible terms.

Here’s a deeper look at how each one works.

No Income Mortgage Loan

Best for borrowers who have solid assets and credit but do not want their income reviewed at all. This could be due to complicated tax returns, inconsistent earnings, multiple businesses, or a year with heavy write‑offs.

A no income mortgage ignores income entirely — income is not stated, employment may not be stated, and DTI is not calculated. The tradeoff: rates are higher because the lender is relying solely on your financial stability.

Bank Statement Loan

Best for self‑employed borrowers whose true earnings don’t show up on tax returns.

A bank statement loan counts your business or personal deposits as income. It’s ideal for:

• 1099 earners
• small business owners
• independent contractors
• entrepreneurs with strong revenue but heavy write‑offs

Bank statement loans often price better than no income mortgage, but still higher than asset depletion or traditional loans.

Asset Depletion Mortgage (The Better First Option)

This is the gold standard for borrowers with meaningful assets — and anyone exploring a no income mortgage loan should first try to qualify through asset depletion.

Why? Because asset depletion loans usually offer:

• lower interest rates than no income mortgage
• better terms
• conventional or jumbo pricing depending on the lender
• wider property eligibility

How Asset Depletion Works: The lender takes your liquid assets — such as brokerage accounts, retirement funds, cash, or in some cases crypto — and converts them into theoretical monthly income using a formula.

For example:

• $2,000,000 in liquid assets
• divided by 240 months (Fannie Mae model) or a lender‑specific factor
• = $8,333 per month qualifying income

This allows borrowers with high net worth but low AGI to qualify just like a traditional earner.

Why It Matters for No‑Ratio Borrowers: Many people pursue no income mortgages because their tax returns disqualify them. But if they have strong assets, asset depletion can qualify them with better pricing and significantly lower monthly payments.

If you have enough assets to make the math work, asset depletion should be your first stop every time. No‑ratio becomes the fallback when:

• assets are strong but not high enough to generate adequate qualifying income
• assets aren’t eligible under depletion formulas
• the borrower wants income completely excluded (privacy)
• the borrower’s profile doesn’t fit Fannie/Freddie or jumbo depletion rules

DSCR Loan

Best for real estate investors qualifying purely on property cash flow.

A DSCR loan ignores personal income entirely and qualifies based on whether the rent covers the mortgage payment. These loans are perfect for investors who:

• own multiple properties
• don’t want to use tax returns
• have complex LLC structures
• want rapid portfolio expansion

DSCR is frequently used for investment properties only, while no income mortgage and asset depletion are often used for primary residences.

Best for real estate investors qualifying purely on property cash flow.

Real-Life Example: Texas Buyer With Low AGI but Strong Assets

A Houston client made great money but showed almost none of it due to heavy business depreciation. AGI on paper: $58,000. Assets: $1.2M.

A traditional lender denied him three times.

A no ratio jumbo loan approved him with:

• 25% down

• 740 credit

• 12 months reserves

• No income docs at all

He closed in 30 days.

Is a No Ratio Mortgage Risky?

Only if the borrower truly cannot afford the payment.

But the typical no ratio borrower is:

• Asset-rich

• Sophisticated

• Financially stable

• In a temporary low-income season

This loan isn’t designed to help people pretend they can afford a home. It’s designed to help qualified buyers avoid unnecessary underwriting obstacles.

Should You Use a No Ratio Mortgage?

A no ratio mortgage makes sense if:

• Your income is complex, variable, or temporarily low

• You don’t want underwriters digging through tax returns

• You have strong assets and credit, but not strong enough for an asset depletion mortgage

• You want a fast, clean closing

• You’re buying a jumbo property

• You plan to refinance later

Final Thoughts: A Smarter Path to Homeownership

The mortgage world hasn’t caught up to the modern economy.  A no ratio mortgage recognizes that.

It’s not for everyone—but for the right buyer, it’s the cleanest, most efficient way to buy a home without letting traditional underwriting derail your plans.