W-2 Income Mortgages
There comes a time in every American’s life when you think about mortgage. Each lender has its own requirements for mortgage applications, however, among them the most important is a proof of permanent income and if you can prove your income with 2-year W-2s and at least 2-year tax returns, then you are the most desirable customer for most of the banks, the only thing you need is a W-2 transcript.
That means if you are a W-2 salaried borrower with a base and overtime, you only need to perform W-2 transcript processing. The same applies if you are a W-2 salaried employee and your commission and bonus income represents less than 25% of your base.
This document helps to prevent any fraud by matching the income shown on the documents you provided with the information shown on the documents during the lender’s review of your application for underwriting. These documents are proof of income for a specified period and directly affect a positive mortgage decision.
With a W-2 transcript in hand, you can apply for conventional, FHA, and Jumbo loans.
Conventional mortgage loan is a conforming mortgage product made without guarantees or collateral from a government entity. Conventional mortgages are made by private lenders and can be sold to two government-owned entities, Fannie Mae or Freddie Mac.
FHA loan is a loan secured by the Federal Housing Administration. The Federal Housing Administration does not originate the loan itself; it only insures eligible lending institutions against mortgage defaults.
Jumbo loans are mortgages that exceeds a county’s maximum bank-approved loan amount. In some areas of the U.S., home prices have risen so high that many buyers have had to apply for very large loans. The interest rate on Jumbo loans is usually slightly higher than in other cases. These loans carry a higher degree of risk for lenders because they are for larger amounts and do not come with insurance.
LBC Mortgage company is always here to help you get a W-2 transcript and obtain a mortgage on the best terms for you! Should you unable to provide W-2s we are always ready to tailor a mortgage program to suit your conditions.