Last updated: September 2025
Quick Answer
If you’re self-employed or a real estate investor without W-2s or traditional tax returns, you still have strong mortgage options. DSCR loans, bank statement mortgages, and asset-based loans let you qualify based on property cash flow, business income, or liquid assets—without needing a job history or paycheck.
Why W-2s aren’t required for every mortgage
Traditional mortgages depend on W-2 income, tax returns, and strict employment verification. But that model doesn’t work for everyone, especially:
- Self-employed business owners
- Real estate investors
- Commission-based professionals
- Veterans with alternative income sources
- Gig economy workers or freelancers
Fortunately, the rise of non-QM loans (non-qualified mortgages) has created flexible financing options that work without W-2s. These loans prioritize cash flow, bank activity, or asset reserves over standard income documentation.
1. DSCR loans: Rental income replaces personal income
DSCR (Debt-Service Coverage Ratio) loans are ideal for real estate investors who want to qualify based on property income rather than their job or business.
How it works:
- No W-2s, pay stubs, or tax returns required
- Lenders calculate DSCR = Rent ÷ PITI (Principal, Interest, Taxes, Insurance)
- Common DSCR minimum: 1.00 to 1.25
- You can buy through your LLC or business entity
Example:
- Rent: $2,200/month
- PITI: $1,800/month
- DSCR = 2,200 ÷ 1,800 = 1.22
This qualifies under most DSCR guidelines, even in the absence of traditional employment.
Best for:
- Full-time investors
- Landlords expanding their portfolios
- Buyers with high rental yield properties
Downside:
- Higher interest rates than conventional loans
- Not available for primary residences
2. Bank statement loans: Income verified through deposits
Bank statement loans allow self-employed borrowers to use their business or personal bank deposits as proof of income.
Instead of showing W-2s or tax returns, you’ll submit 12 or 24 months of statements.
How it works:
- Lenders total your monthly deposits
- An expense ratio (typically 50%) is applied to estimate net income
- Works for sole proprietors, LLCs, S-Corps, and freelancers
- You must show business continuity and a stable income flow
Example:
- 12-month average deposits: $20,000/month
- Lender applies a 50% expense factor
- Qualifying income: $10,000/month
This puts you in range for a conventional-sized loan or higher.
Best for:
- Entrepreneurs
- Freelancers and gig workers
- Self-employed buyers without usable tax returns
Downside:
- Minimum credit score is often 680+
- Higher interest rates than traditional loans
- May require large cash reserves
3. Asset-based loans: Liquid wealth replaces income
If you have significant liquid assets, you may qualify for a mortgage based solely on those funds. No income required.
How it works:
- Lenders use your investment, retirement, or savings balances
- A calculation formula determines how much income your assets can support
- Assets must be seasoned (usually 60–90 days in the account)
- Loan approval is based on asset depletion math
Common calculation:
- $1,000,000 in liquid assets
- Divided over 120 months (10 years)
- Monthly qualifying income = $8,333
You don’t need to liquidate the assets; you’re simply proving you could.
Best for:
- High-net-worth buyers
- Retirees without regular income
- Veterans with investment portfolios
Downside:
- Higher credit score requirements (700+ typical)
- Only available for certain property types
- Requires clear documentation of asset ownership
Comparing non-W-2 loan options
| Feature | DSCR Loan | Bank Statement Loan | Asset-Based Loan |
|---|---|---|---|
| Income required? | No | Yes (from bank deposits) | No (assets only) |
| Property type | Investment only | Primary or investment | Primary or investment |
| Min. credit score | 660–680 | 680+ | 700+ |
| Use LLC or business? | Yes | Sometimes | Yes |
| Documents needed | Lease or rent history | 12–24 months of statements | Proof of asset balances |
| Down payment | 20–25% typical | 10–20% | 25% or more |
Let’s Build Your Path to Homeownership
At Salute Mortgage, we combine veteran-led guidance with clear, tactical support—whether you're buying your first home, refinancing, or planning for long-term equity.
Who should consider a no-W-2 mortgage?
You’re a great candidate for one of these loans if:
- You don’t receive paychecks or traditional income
- Your tax returns don’t reflect your true earning power
- You own multiple rental properties or flip houses
- You run a business with fluctuating revenue
- You have significant savings or retirement funds
- You’re a veteran with non-traditional financial documents
Why investment property loans don’t follow traditional rules
Traditional mortgages are built for people with steady paychecks and plans to live in the home they’re buying. That setup doesn’t work well for self-employed buyers or real estate investors.
Investment property loans are different. These loans focus on the numbers—not your job title. Lenders care about whether the property brings in enough income, how much equity you’ll have, and your track record as an investor.
That’s why options like DSCR loans and bank statement mortgages exist. They’re designed to work for entrepreneurs, landlords, and buyers who don’t fit the standard W-2 mold.
With these loans, you can:
- Qualify based on rental income or bank deposits
- Avoid piles of paperwork
- Buy through your LLC
- Scale your portfolio faster
If you’re building a rental business, don’t get stuck using old rules. The right investment loan considers your strategy—not your salary—and helps you move forward faster.
FAQ: No W-2 mortgage
Yes. You can use DSCR loans, bank statement loans, or asset-based mortgages to qualify without W-2s or tax returns.
Most lenders require a minimum of 660 to 700, depending on the loan type and property.
Yes. For bank statements and asset-based loans. DSCR loans are available only for investment properties.
Yes. DSCR and some bank statement lenders allow purchases through LLCs or business entities.
Not always. Some lenders accept commission-based or irregular income sources. Others work with retirees or full-time investors.
You don’t need a paycheck to get a mortgage
Traditional mortgage rules don’t work for everyone—and they don’t have to. Whether you're a real estate investor, an entrepreneur, or a high-net-worth veteran, you have loan options that fit your financial picture.
- DSCR loans let the property qualify
- Bank statement loans use your business income
- Asset-based loans rely on your net worth
At Salute Mortgage, we help buyers like you close deals—without the red tape of traditional underwriting.
