As we have discussed in the past and a common theme amongst loan products is that FHA Loans are by far the most popular loan program offered due to the easier requirements to get approved for compared to their Conventional Loan counterparts. The one myth about FHA Loans is that they are for first-time home buyers or individuals with bad or damaged credit. This is just not the case as plenty of people with solid credit scores and debt to income ratios are finding themselves using FHA Loans as well. As you probably know by now with a minimum 620 FICO, you can obtain an FHA Loan with 3.5% down and can have a whopping 56.9% debt to income ratio. Another positive is there isn’t a limit on non-occupant co-borrowers just as long as these co-borrowers are related to the borrower by blood, marriage, or law. For the normal individual looking for a loan what they have probably done is file taxes in an effort to pay the least amount of tax or obtain the largest tax return possible. This is good in the short-term, however, when it comes to mortgage qualification these large deductions can hurt your qualifying income leaving you with the ability to afford a lot less home than what was imagined. FHA has a program that solves this and it is the FHA W-2 Only Mortgage Loan and it is offered right here at Loan Consultants. With the FHA W-2 Only Mortgage Loan borrowers can go through the mortgage qualification process without having to share or have tax returns scrutinized in any way.
If you are looking to qualify for the FHA W-2 Only Mortgage Loan you must abide by the following requirements:
– You must have been employed by the same employer for the past 2 years
– You don’t just need to be a salaried employee as you can also make hourly wages as well
– Documents: Paystubs (30 days), 2 years W-2s
– Ensure that tax returns are under no circumstances submitted for the FHA W-2 Only Mortgage Loan
– Borrower may get disqualified from the FHA W-2 Only Mortgage Loan if more than 25% of their income was commission based
– Non-occupant co-borrowers for the FHA W-2 Only Mortgage Loan are prohibited
– Must receive an Approve/Eligible to qualify and a Manual Underwrite is not eligible for this program.
If you were thinking that the FHA W-2 Only Mortgage Loan was for everyone, then you might be mistaken as the following situations and examples will deem borrowers ineligible for this program.
– Self-Employed Borrowers
– 25% or greater commission income on their W-2
– Borrowers who have earned income from a foreign entity and paid via foreign currency
– Borrowers who are employed by family members
– Borrowers who receive dividends, interest income, and capital gains
– Income reported via IRS Form 4137 that was not reported by their employer on their W2
If you feel you are a good fit for the FHA W-2 Only Mortgage Loan, you need to call today as Loan Consultants offers this loan program as well as many other QM and Non-QM Products. We will have a product for every situation out there and we will get your loan done. If you’d like to reach out you can call or text me at any time via 888-900-1020, email at firstname.lastname@example.org, or visit my website www.loanconsultants.org to apply today. We are available 7 days a week, nights, weekends, and holidays to better serve each and every one of our clients.