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I file exempt for my income tax, and as such, do not file tax returns. Is it possible to get a loan?

I file exempt on my income taxes and because of this, I have no tax returns. I am finding it difficult to get a home loan because none of the Mortgage Brokers that I talk to have dealt with this. Is there a way to get a loan when you have no tax returns, but its legal and not due to tax evasion?
  • August 05 2012 - Yuba City
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Answers (4)

Evidence of income received and evidence of its tax exemption and you are good to go.  If the income truly is tax exempt you can also increase the income (gross up) by the equivalent of the income tax bracket. (15%/20%, etc.)

Tell your lender to read the 4155.1 regarding non-taxable income.
  • August 06 2012
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Profile picture for Cindy Quinton
I guess I am not understanding how or why you are "exempt."
  • August 05 2012
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Profile picture for user728512
I work at a natural food store, and before that a public school. I have pay stubs, W2s, I got all the paperwork the broker asked me for. But when it came to the tax returns he scratched his head and said "I'm not sure what to do about this"....
  • August 05 2012
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Profile picture for Cindy Quinton
What is your source of income? That is likely the problem; federal laws are now in place to prohibit the loaning of money for a home purchase if one can't show enough income to make the payments.

You can read more here: Dodd Frank
  • August 05 2012
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