W-2 Income Only Home Loans With No Tax Returns Guidelines


This BLOG On W-2 Income Only Home Loans With No Tax Returns Guidelines Was UPDATED And PUBLISHED On October 16th, 2019

W-2 Income Only Home Loans
The Gustan Cho Team at GCA

Income is one of the most important factors when it comes to qualifying for a residential mortgage loans.

  • There are many instances where Automated Underwriting System Approval (AUS) does not require income tax returns from W2 Wage Earners
  • Mortgage Lenders with no mortgage overlays only go off Automated Underwriting System Approval (AUS)
  • So if AUS does not require income tax returns by borrowers, we do not require it
  • W2 income wage earners can now qualify for W-2 Income With No Tax Returns required on FHA Loans, VA Home Loans, and Conventional Loans

In this article, we will cover and discuss W-2 Income Mortgage without tax returns.

Qualifying For W-2 Income Only Home Loans With No Tax Returns

How Qualifying For W-2 Income Only Home Loans With No Tax Returns

The past days of no income, no documentation loans have long been gone. Cash income does not count in the mortgage lending world. All income needs to be sourced and documented:

  • For those mortgage loan applicants who are self employed or are 1099 wage earners, two years of tax returns are required
  • For those W-2 income wage earners, the most 30 days of paycheck stubs are required and most mortgage lenders want to see two years of W-2s as well as tax returns
  • We have just launched a new residential mortgage loan product for W2 wage earners
  • It is called W-2 Income Only Home Loans where only two years W-2s are required and the past two years tax returns are no longer required
  • W-2 Income Only Home Loans is available for FHA Loans, VA Loans, and Conventional Loans
  • This is not offered by all lenders
  • The Gustan Cho Team at Loan Cabin Inc. offers the W-2 Income Only Home Loans

To qualify for W-2 Income Home Loans With No Tax Returns with FHA, VA, and Conventional Loans, borrowers need to be W-2 Income wage earners. 1099 or self-employed borrowers do not qualify.

Why Are 2 Years Tax Returns Required?

Why Are 2 Years Tax Returns Required?

Even though borrowers are W-2 income wage earners and the Automated Underwriting System does not condition for two years income tax returns many lenders will ask for two year tax returns.

  • The reason being is due to tax deductions from income taxes
  • Writeoffs on tax returns offset monthly gross income
  • This reduction of gross income will often times hurt borrowers when it comes to debt to income ratios calculations
  • Due to the income tax deductions, many cannot qualify for FHA, VA, Conventional Loans
  • For example, many police officers and firefighters get uniform allowances
  • Many of them do write off expenses for uniforms, weapons, equipment, and other on the job-related write-offs on their income tax returns

Unfortunately, these write off will bite them in the rear end when it comes to qualifying for home loans because some of these write-offs can add to several thousands of dollars.

Income Tax Write-Offs

What is Income Tax Write-Offs

These write-offs are then subtracted from gross monthly income where in many cases exceeds the maximum debt to income ratios allowed:

  • Many borrowers try to amend their tax returns where they want to reverse the write-off
  • However, amending tax returns requires a six month waiting period before the amended tax returns can be used to qualify for a mortgage
  • With the new W-2 Income Only Home Loans, no tax returns are required and W2 wage earners can now qualify for home loans

W2 income wage earners who have rental properties will not qualify for W-2 Income Only Home Loans.

Lender With NO Overlays

Who is Lender With NO Overlays?

Gustan Cho Associates is a direct lender with no overlays on government and conventional loans. Gustan Cho Associates Mortgage Group offers W-2 Income Only Home Loans with no income tax returns required on FHA, VA, Conventional Loans. Borrowers who need to qualify for FHA, VA, USDA, Conventional Loans with no income tax returns, please contact us Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at gcho@gustancho.com. We are available 7 days a week, evenings, weekends, and holidays.

Gustan Cho


  1. Behr says

    I have W2 income from my day job and also have a side business as a sole proprietor real estate agent. I write off many of my expenses from the side business on my taxes on a schedule C. Will I be able to approve for a W-2 only loan program?


  2. Gustan Cho says

    The answer to you question is yes. The W-2 only program without submitting tax returns is only available for FHA Loans. You have to be a full time W-2 wage earner and two years of W-2s are required. Tax returns cannot be submitted to the underwriter. If the mortgage loan processor submits the tax returns by mistake, the whole deal is dead.

  3. Fred brooks says

    looking for a W2 only morgage loan company.

    1. Gustan Cho says

      W-2 Only income is no longer available as of two months ago.

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