Couldn’t agree more about the tradeoff. I’ve taken on higher rates just to close a deal fast, and yeah, it stings when you see how much extra you’re paying over time. But missing out on a property because you’re stuck chasing paperwork is worse, in my experience. The real frustration is how rigid lenders still are—there’s so much nuance in self-employed income, but most products just treat us all as high risk. Maybe one day they’ll figure out a smarter way to price that volatility, but for now, you just have to weigh the cost against the opportunity.
Yeah, I’ve been there—sometimes you just have to bite the bullet on a higher rate if it means locking in a property before someone else swoops in. The paperwork grind is brutal, especially when you’re juggling multiple projects and every lender wants a different flavor of documentation. I do wish lenders would look past the surface numbers. My income fluctuates, sure, but the overall trend is solid. It’s not all risk, but they rarely see it that way. Maybe one day they’ll catch up to how business actually works for us... until then, it’s just another cost of doing business.
I do wish lenders would look past the surface numbers. My income fluctuates, sure, but the overall trend is solid. It’s not all risk, but they rarely see it that way.
Preaching to the choir here. I swear, if I had a dollar for every time I had to explain “no, I don’t get paid the same every month, but yes, I can still pay a mortgage,” I’d have enough for a second down payment. The hoops are wild—one lender wanted a letter from my accountant and my dog’s vet (okay, maybe not the last one). These no tax return loans sound promising, but I’m still waiting for them to invent a “proof of hustle” line on the application...
Not sure I’m sold on these no tax return loans yet. I get the appeal, but I’ve seen a few folks get hit with higher rates or stricter terms just because the paperwork’s lighter. Lenders still want to cover their bases, and sometimes that means more hoops, just different ones. Honestly, I’d rather deal with the hassle upfront than get stuck with a loan that’s less flexible down the line. Maybe I’m just old school, but I like knowing exactly what I’m signing up for...
Honestly, I’d rather deal with the hassle upfront than get stuck with a loan that’s less flexible down the line.
Right there with you. Here’s what I’ve seen:
- No tax return loans = higher rates, stricter terms, and sometimes bigger down payments.
- Lenders still want proof you can pay, just in different forms (bank statements, asset checks, etc.).
- If you’re self-employed and your income’s all over the place, these can help—but you’ll pay for the convenience.
- Traditional route is more paperwork, but usually better rates and more options later if you want to refinance.
Had a client last year who went the “no doc” route—regretted it when they tried to switch lenders. Sometimes the old school way really does save headaches.