If you are backed up against the wall and have non-traditional income, we have a definite option for you to get you a mortgage approval without Tax Returns or a written Verification of Employment (VOE) used to calculate your approval. Here at Loan Consultants we have many creative financing options and one that can be used here is qualification using on W2 income only. Using this financing option we can qualify borrowers only using their W2 income without showing their tax returns if they have a high amount of expenses written off. The only caveat with this type of calculation is that the borrower cannot be using 1099 income or have received a 1099 for income earned in the past 2 years. All we care about is properly recorded W2 income over the last 2 years. In this article I am going to go through the case scenario of how we took in a borrower that got declined from 2 previous lenders but got a loan commitment from us over the course of a weekend.
In an effort to keep the identity of the individual anonymous, we will refer to our borrower as Brian and we are going to walk through his denials, to his approval, and finally ending with a firm loan commitment for a Mortgage With W2 Income. Brian was in the process of purchasing a new construction home and was going through the preferred lender of the builder. After weeks of trying to get a preapproval for Brian, he was ultimately met with a road block as this lender was not going to get him approved and they really didn’t disclose why this was. With minimal time to waste, Brian moved on to a referral lender and initially had a pre qualification from them. However, upon going through Brian’s documentation, he was not issued a pre-approval and was told they were not going to be able to finance him a home with his current debt to income ratio. What was Brian to do? His house was built, he has a new baby, and a wife to take care of. That is where Loan Consultants stepped in to make things right…
It was a Friday night and the phone rings. It appears that Brian has gotten in contact with Loan Consultants. As we don’t work your standard 9-5 hours, we are available 24-7-365 and will always be there to help you. Upon getting the phone call from Brian and some basic information, we knew that we could help this man and were focused on putting him into his dream home and making this nightmare end. Between Friday night and Saturday Brian submitted all the documentation he had previously used with other lenders. Working all day Saturday and Sunday, we crunched the numbers to make sure we could get Brian approved for the mortgage he so greatly desired. We were close, but we just couldn’t pass our debt to income ratio to get a Fannie Mae approve eligible.
How were we going to get Brian approved with a 50.8% debt to income ratio when Fannie Mae required us to get below a 45% debt to income ratio. After much back and forth and looking for all possible options, the light bulb went off and we got 2 ideas. Our first option was to try and get Brian approved using LP and Freddie Mac where under certain circumstances you can get approved with a 49.99% debt to income ratio. This would be great for us but we still needed a little bit more to reduce his debt to income ratio. That’s It!!! We can try to get a Mortgage With W2 Income. Under this option we can take his previous year’s W2 income and average it out over a monthly basisto get us an updated gross income basis for calculations. We crunched the numbers and when we updated Brian’s income we were left with a 49.6% debt to income ratio and an APPROVAL. We double checked our numbers to ensure we got everything calculated properly, and sure enough we did!
As you can see, we took a loan denial and flipped it into an approval by thinking outside the box and utilizing a Freddie Mac program for a Mortgage With W2 Income only. Brian had not heard about this option from his two previous lenders and he was grateful that we had taken his puzzle and solved it. What started out as a longshot now has Brian with a Mortgage With W2 Income and he will be closing on his loan shortly. Here with Loan Consultants, at www.loanconsultants.org, we do what it takes and go above and beyond to make sure we do everything we can to get you the loan you deserve. Just take Brian’s example and think twice before you go anywhere else. We will get you approved when all others say “No.”