No Income Verification Mortgage for Investors: DSCR, Bank Statement & Alt-Doc Loans

Real estate investors often face a frustrating paradox: they own significant assets and generate substantial income, but their tax returns — full of legitimate write-offs — show little taxable income. This makes qualifying for conventional mortgages nearly impossible. No income verification mortgage programs solve this problem by qualifying borrowers on alternative income documentation.

The Three Main No-Income-Verification Programs

1. DSCR Loans (Rental Properties)

Best for: Investors buying or refinancing rental properties

DSCR loans qualify based entirely on the property's rental income — no personal income documentation whatsoever. The lender calculates the Debt Service Coverage Ratio (DSCR = rent ÷ PITIA) and approves the loan if the ratio meets their minimum threshold.

• Income documentation: None (property rent only)
• Minimum DSCR: 0.75–1.0 depending on program
• Rates: 6.75% – 9.25% (30-year fixed)
• LTV: Up to 80%
• Best for: Investors with multiple properties, self-employed borrowers

2. Bank Statement Loans

Best for: Self-employed borrowers buying primary residences or investment properties

Bank statement loans qualify based on 12–24 months of business or personal bank statements, using deposits as a proxy for income. The lender calculates an "effective income" from the deposits (typically 50% of gross deposits for business accounts, 100% for personal).

• Income documentation: 12–24 months bank statements
• Expense factor: 50% for business, 100% for personal
• Rates: 7.00% – 9.00%
• LTV: Up to 80–85%
• Best for: Self-employed with strong cash flow but low taxable income

3. Asset Depletion Loans

Best for: Retirees and high-net-worth borrowers with large liquid assets

Asset depletion (also called asset dissipation) loans qualify based on liquid assets rather than income. The lender divides your total liquid assets by the loan term (in months) to calculate a "monthly income."

Example: $1,500,000 in liquid assets ÷ 360 months = $4,167/month qualifying income

• Income documentation: Asset statements only
• Eligible assets: Bank accounts, brokerage accounts, retirement accounts (at 70%)
• Rates: 7.00% – 8.50%
• LTV: Up to 75–80%
• Best for: Retirees, high-net-worth individuals with large portfolios

Comparison Table

Program	Income Docs	Best Use	Rate Range	Max LTV
DSCR	None	Rental properties	6.75–9.25%	80%
Bank Statement	12–24 mo statements	Self-employed	7.00–9.00%	85%
Asset Depletion	Asset statements	Retirees/HNW	7.00–8.50%	80%
Conventional	W-2 + tax returns	W-2 employees	6.50–7.50%	80%

Which Program Is Right for You?

Choose DSCR if: You're buying or refinancing a rental property and the rent covers the mortgage payment.

Choose bank statement if: You're self-employed, the property won't be a rental, and you have strong business cash flow.

Choose asset depletion if: You're retired or have significant liquid assets but limited current income.

AllApprovedHere.com offers all three programs in Arizona, California, Washington, Nevada, and Colorado. Get pre-qualified today — our specialists will match you to the right program for your situation.