Honestly, I get where you’re coming from with the “choose your own adventure” vibe—sometimes it really does feel like lenders are just making it up as they go. But I’ve actually seen a few of these no-tax-return loans work out smoother than the old-school process, at least for some clients. It’s not perfect, but for folks who have super complicated tax returns (or write off everything under the sun), not having to hand those over can be a relief.
That said, yeah, the paperwork is still wild. I had a client last month who got asked for three months of business bank statements and a profit & loss statement signed by their CPA. No tax returns, but still a pile of stuff. The thing is, I’d almost rather deal with that upfront than get halfway through and have an underwriter suddenly demand two years’ worth of 1099s or something random. At least with these newer products, you kind of know it’s going to be weird from the jump.
I do wonder if some of this is just lenders trying to cover themselves because self-employed income is so unpredictable. They’re probably just as nervous as we are about missing something. Still, I wish they’d be clearer about what’s actually needed instead of moving the goalposts every week.
Maybe the real trick isn’t keeping every scrap of paper (though I do that too), but just asking for a full list of possible docs before you even start. Sometimes they’ll give you a checklist that covers 90% of it... and then you only get one or two surprises instead of ten.
Anyway, I wouldn’t write these loans off completely. They’re not magic, but for some folks they’re less painful than the old way—just depends on your situation and how much chaos you can handle.
Totally get where you’re coming from about the paperwork circus—it’s wild how much they can ask for, even with these “no tax return” loans. When we refinanced last year, I was hoping it’d be a breeze since we didn’t have to dig up old returns, but then the lender wanted months of bank statements, a letter from my accountant, even proof of some random deposits. It was a headache, but at least it was upfront like you said. I’d rather know what I’m in for than get a surprise request halfway through.
It’s frustrating that lenders can’t just pick a lane and stick with it. I guess they’re just trying to avoid any risk, but it does feel like they’re making up new rules as they go. I do think your idea about getting a full list of docs before starting is the way to go. We asked for one and still got a couple curveballs, but at least it wasn’t a total shock.
Honestly, these loans aren’t perfect, but for anyone self-employed or with messy taxes, they’re way less stressful than dealing with two years of returns and all the explanations that come with them. I mean, not everyone’s finances fit neatly in those boxes. If the trade-off is a bit more upfront paperwork but less back-and-forth, I’ll take it.
Maybe someday lenders will figure out how to make this process less confusing... but until then, I guess we just keep a folder of every possible doc and hope for the best. At least you know you’re not alone in the chaos.
Yeah, I hear you on the paperwork maze. When I tried for a no tax return loan last fall, I figured it’d be less hassle, but they still wanted a mountain of stuff—bank statements, invoices, even a signed letter from my client. It’s like they just swap one set of hoops for another. I get why they’re cautious, but sometimes it feels like overkill. Still, I’d rather deal with that upfront than get blindsided halfway through. Not perfect, but at least it’s doable if you’re organized... or just stubborn enough to keep at it.
It’s like they just swap one set of hoops for another. I get why they’re cautious, but sometimes it feels like overkill.
That’s exactly how it felt when I refinanced last year. I went in thinking “no tax return loan” meant I’d just sign my name and be done—maybe a quick blood oath, nothing major. Instead, it turned into a scavenger hunt for every financial scrap I’d ever touched. Here’s how it played out for me, in case anyone else is bracing for the paperwork parade:
Step 1: Gather every bank statement you can find. Not just the main account—think business, personal, that old savings account you forgot about. If you bought a coffee with it in 2022, they want to see it.
Step 2: Invoices. All of them. Even the ones from that client who paid you in gift cards. (Okay, maybe not those, but you get the idea.)
Step 3: Letters from clients. This one threw me. I had to awkwardly email a couple folks and basically ask them to vouch for me like I was applying to an exclusive club. “Dear lender, yes, this person does work for me and isn’t just making up numbers.” Super fun.
Step 4: Proof of ongoing work. Screenshots of contracts, emails, whatever shows you’re not about to run off to Bali and disappear.
Honestly, I get the need for caution—nobody wants another 2008—but sometimes it feels like they’re just making sure you’re persistent enough to survive the process. The upside is, once you’ve got your “paperwork survival kit” together, it’s a lot smoother if you ever need to do it again.
I will say, being stubborn helps. Organization is great, but sheer stubbornness got me through the fifth time they asked for “just one more document.” At some point, you start to wonder if they’re testing your patience or your finances.
Not perfect, but hey, at least we get a house at the end of it... assuming we don’t lose our minds first.
Couldn’t agree more with the “paperwork survival kit” approach. It’s wild how “no tax return” just means “different flavor of paperwork headache.” Here’s what I ran into:
- They wanted a letter from my accountant, which is hilarious because my accountant is basically me with a spreadsheet and a coffee addiction.
- Had to explain every random deposit over $500. Sold an old bike? Better have a receipt or a very convincing story.
- At one point, I started labeling folders “For the Next Ridiculous Request” just to keep my sanity.
Honestly, I get why they’re cautious, but sometimes it feels like they’re just testing if you’ll give up. The upside is, my credit score got a little boost from all the account clean-up I did along the way. Not sure if that was their plan, but hey, I’ll take it.
If anyone’s thinking it’ll be a breeze, just know: stubbornness and a sense of humor are required equipment.
