Yeah, it’s wild how the paperwork just morphs instead of disappearing. I’ve seen folks get tripped up by something as random as a birthday gift deposit from grandma—suddenly you’re writing a letter explaining a $200 transfer. The “no tax return” route can be a lifesaver for self-employed folks, but you’re right, it’s not exactly a walk in the park. At least it gives people with non-traditional income a fighting chance, even if it means jumping through some weird hoops.
I’ve seen folks get tripped up by something as random as a birthday gift deposit from grandma—suddenly you’re writing a letter explaining a $200 transfer.
That’s the part that always gets me. You think you’re being careful, then some tiny thing like a Venmo from your cousin for splitting dinner shows up and suddenly the underwriter wants a full essay. I remember when I was trying to refi last year, they flagged a $150 PayPal deposit from selling an old bike. Had to dig up screenshots, messages, the whole nine yards. It’s like they want you to have a paper trail for every cup of coffee.
The “no tax return” loans are definitely a step in the right direction for people who don’t have W2s, but I wouldn’t call them easy. Lenders still want to see bank statements, profit and loss forms, sometimes even letters from clients. It’s less about the tax returns and more about proving you’re not just making up numbers. I get why they do it, but man, it can feel like you’re jumping through hoops on fire.
One thing that helped me was keeping my business and personal accounts totally separate. That way, when they ask about deposits or weird transfers, at least it’s not mixed in with my rent or grocery money. Also, if you know you’re going to apply for something big like a mortgage, try to keep your accounts as boring as possible for a few months before. No random cash gifts or side hustles showing up out of nowhere.
I do think these new loan options are better than nothing, but anyone going this route should be ready for some weird questions and extra paperwork. It’s not quite the “easy button” some people hope for, but at least it’s not an automatic no anymore if your income doesn’t fit in their box.
Totally get what you mean about the random deposits. I’m in the middle of my first home purchase and I swear, my lender questioned a $60 Zelle from my sister. She literally paid me back for movie tickets. Had to send screenshots of our texts and everything. At this point, I feel like I should just write a diary entry for every transaction before I even talk to them.
I know folks say separating accounts is the way to go, but honestly, I didn’t even think about that until after I started the process. Now I’m regretting every time I mixed up business and personal stuff. If you haven’t started yet, seriously, do it early. Makes life way easier.
One thing I’m still not clear on—if you’re self-employed and doing one of these no tax return loans, how do they actually verify your income? Is it just bank statements, or do they want contracts or invoices too? My gig work is super irregular, so there’s not a steady paycheck, just a bunch of small payments from different clients. Kind of feels like they’re looking for reasons to say no, not yes.
Also, what’s the deal with cash apps? Are they all treated the same way as regular bank deposits? Because I use Venmo and Cash App a lot for splitting bills and side gigs, and those show up in my bank account too. Seems like that just adds more stuff I’d have to explain.
I get why lenders have to check, but sometimes it feels like overkill. I’m just trying to buy a house, not launder money. Anyone else end up feeling like they’re being interrogated over lunch money?
Honestly, I get why it feels like overkill, but from the lender’s side, it’s about risk management. They’re not just looking for reasons to say no—they’re making sure the income is stable and legit. With no tax return loans, bank statements are usually the main thing, but I’ve seen lenders ask for contracts or invoices if deposits look inconsistent. Cash app deposits can be a headache because they’re harder to trace back to actual work. If you can tie them to invoices or client names, it helps. Mixing business and personal just muddies the water more—been there myself and it slowed everything down. It’s a pain, but they’re not out to get you... just covering their bases.
Honestly, I tried to refinance last year and got stuck in the “prove your income” maze. Here’s what helped me: first, I split my business and personal accounts (should’ve done that way sooner, lesson learned). Then I started labeling every deposit—like, literally writing a note or attaching the invoice number. The bank still grilled me about a few Venmo payments, but being able to tie them to actual work made the process smoother. Not saying it’s fun, but it definitely sped things up compared to my first attempt where everything was mixed together. If you’re freelancing, keeping things tidy upfront saves so much hassle later.
