To obtain a mortgage without a bank statement, borrowers must provide alternative proof of income and assets. Lenders may accept tax returns (1040, 1099), pay stubs, W-2 forms, or business financial statements. Self-employed individuals often use Schedule C or K from tax returns. A down payment of 20% or more can help qualify, as it reduces loan-to-value risk. Co-signers with strong credit may also enable approval.

Lenders increasingly accept non-traditional documentation due to evolving financial behaviors and regulatory flexibility. The Urban Institute (2022) reported that 6.7 million U.S. households lack traditional bank accounts, necessitating alternative verification methods. Fannie Mae’s 2023 Selling Guide permits non-traditional credit data, including 12-month pay history or asset seasoning, if verified by a tax preparer or accountant. For example, a borrower with a 10% down payment and a credit score above 680 can qualify for a conforming loan using tax returns instead of bank statements. The Federal Housing Administration (FHA) also allows alternative documentation for loans with a 3.5% down payment, catering to borrowers with irregular income streams. Data from the Consumer Financial Protection Bureau (2021) shows that 23% of mortgages approved in 2020 used non-traditional documentation, reflecting growing lender adaptability. However, stricter underwriting for higher-risk profiles may require larger down payments or higher credit scores to offset the absence of bank statement evidence.