Does filing your taxes this way make it difficult to obtain mortgages or financing from banks?

In our six years of experience, none of our clients have ever reported being unable to secure a mortgage or financing due to the 12-411 process. Your tax return will still show your gross income, which is what most lenders focus on. However, since your taxable income will be $0.00, some lenders may have specific requirements. If a lender doesn’t accept this tax filing structure, simply work with another lender that offers:

• Bank statement loans

• Low-document or no-document loans

• Pay stub verification loans

You will not be the first or last person to have a $0 tax liability. Lenders come across clients with $0 taxable income regularly, whether it’s from tax-exempt income sources, trusts, business deductions, or legal tax strategies like the 12-411 process. There are always lenders who will approve loans and take your situation into consideration.. If you need to make more calls to find the right lender, that’s just part of the process—but it’s a small trade-off for never having to pay federal or state income tax again for the rest of your life.