Mortgage approval with no W2

lisababin · Joined: 05 Nov 2007 Posts: 1 1.56 Dollars($)

My husband's company did not provide him with W2s for last year. Can we use a notarized letter from his company or payb stubs as proof of income?

jenkin7 · Joined: 04 Jun 2007 Posts: 939 140.77 Dollars($)

Hello Lisababin,

If you are going for a full doc loan then I think you need the W-2 for the last two years along with the pay stubs.

Otherwise you may have to go for a no doc loan.

You have to talk to your lender to find out if they accept a notarized letter from the company.

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Lisababin,

Generally w-2 is needed for the loan application. If you cannot provide W2, you can use a notarized letter from his company or pay stubs as proof of income. But it depends upon the lender whether he will approve it or not. You may need to produce your lender a Verification of Employment also.

Thanks,
Larry

gmakerley1 · Posted: Fri Nov 09, 2007 7:43 am Post subject:

the standard is as follows: a written verification of employment from the employer (using a standard form issued by the lender) is sufficient to qualify income, thereby eliminating the need for either a paystub or w2.

one question - since the issuance of a w2 is federally mandated, how did you gather the information needed to do your tax return?

livinginnky · Posted: Fri Nov 09, 2007 2:25 pm Post subject:

I second the last question... how did he file his taxes then? Did he get a 1099?...

You can usually provide 1 of a few different items to satisfy income verification... ordered from better to worse
1. w-2
2. tax returns
3. bank statements
4. a written letter from employer
5. a verbal verification from employer
6. nothing (this is considered a no doc loan)

You can also try for a stated income loan where you simply state how much you make. In that case and with a no doc loan be prepared to pay higher fees and interest.

Caron

Yes, stated income loans can be the right choice but one has to get prepared to pay thousands of dollars in high interest payments.

Liasaben, just in case you need some more details on Stated income loans, please refer to a previous discussion on such loans.

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