Can You Apply for a Mortgage Without a W2?
Yes, even if you don’t have a W2 to showcase your income, you can still apply for a mortgage.
In today’s mortgage marketplace, the key underwriting focus is on the borrower’s “ability to pay.” In other words, lending firms are looking for verifiable proof that a borrower has the necessary funds (i.e. income, assets, etc.) in order to comfortably pay the proposed monthly mortgage payment.
While a W2 is not necessary, a lender will require a borrower to prove they have a stable, verifiable stream of income that is likely to continue in the future as well as an explanation of any gaps in employment. Documents that may be requested include, but are not limited to, 1099 forms, bank statements, tax returns, proof of assets, etc. Typically, lenders are looking for proven income for at least two years.
If you’re interested in a mortgage for either a refinance or a purchase and you don’t have W2-type income, call your Reliance First Capital Mortgage Analyst to discuss possible loan options.