Income Documents.
Income documentation varies depending on your income source (W2, Self Employed, Retired, etc). We explain each in detail below.
W2 Employees
30 Days of Paystubs Complete computer generate paystubs showing hours, year to date and deductions are required. For employers who provide handwritten paystubs see below for W2 Transcripts.
W2 Forms W2 form from employer is required for all employers for the prior 2 years. You may also provide W2 Transcripts in lieu of the actual W2.
W2 Transcripts W2 Transcripts are required when paystubs are handwritten. You may also use them in place of the actual W2 forms. W2 Transcripts can be obtain online at IRS.gov.
*Tax Returns are generally not required when a borrower has a 2 year history of W2 income.
Self-Employed Borrowers
2 Years of Tax Returns Federal Tax Returns are required for the prior 2 years. All pages must be provided. State Tax Returns are NOT required
Profit & Loss Statement (P&L) Profit and Loss Statements are required for either the prior year (when applying from Jan - April 15th) or the current year, if applying after April 15th.
Business License A Business License is required as proof of the existence that the business currently exists. Generally this can be obtained online or from your CPA.
Assets Documents.
Assets are an important part of buying a home even if you are using Down Payment Assistance or a Zero Down Loan Program. Assets must be liquid. Examples of acceptable liquid assets are:
Checking
Savings
Money Market
IRA
Mutual Funds
Stocks & Bonds
Certificate of Deposit (CD)
401k or 403b
Examples of unacceptable assets are:
Cash on hand
Value of personal items
Unsourced Deposits
Gift Funds
Gift funds may be used as acceptable Down Payment Funds for most loan programs. Some restrictions to the amount and sourcing of the gift funds may exist for some loan programs. There may be different guidelines for the donor relationship to the borrower as well. Please speak with us if you are thinking about using Gift Funds.
Documents must be provided in a PDF or Scan/Fax. Photos of asset documents are not allowed. Document must also contain all pages.
Credit Information.
Although we do pull a credit report, there are times when additional information and documentation are required. Below are some common documents required related to your credit.
Divorce Papers If you have been recently divorced or credit shows an alternate last name, you will need to provide divorce documents. They should be all pages and include any child support, property settlement or separation agreements.
Bankruptcy Any bankruptcy showing on credit will need to have bankruptcy papers and discharge (if applicable) provided. Often times, we are able to obtain these online but if not, you will be required to provide.
Letters of Explanation Depending on your loan program, you may be required to provide certain explanations related to derogatory credit, addresses or inquiries showing on your credit report.
Rental Payment History Rental payment history is sometimes required to be provided for loan approval.
