How Can I Qualify For W2 Only Income Mortgages


How Can I Qualify For W2 Only Income Mortgages

This BLOG On Qualifying W2 Only Income Mortgages Was Written By Gustan Cho NMLS 873293

This BLOG On How Can I Qualify For W2 Only Income Mortgages Was UPDATED On January 2nd, 2018

The Gustan Cho Team at USA Mortgage does not require income tax returns from borrowers if the Automated Underwriting System does not require two years tax returns does not condition for it.

USA Mortgage offers W2 Only Income Mortgages on the following loan programs:

  • FHA Loans
  • VA Loans
  • Conventional Loans (Fannie Mae Only)

Loan Programs Offering W2 Only Income Mortgages

Borrowers can now qualify for W2 Only Income Mortgages with The Gustan Cho Team at USA Mortgage. Borrowers do not need income tax transcripts (1040’s) if they are applying for FHA Loans , VA Loans and Conventional Loans if they are a W2 Income Employee.

Here are the W2 Only Income Mortgages Guidelines:

  • Do not need tax transcripts (1040’s) for FHA, VA loans and Conventional Loans if W-2 employee and AUS does not require it
  • FHA, VA, and Conventional Loans no longer requires a full income tax transcripts (4506-T) to be done if they are a W-2 employee
  • This rules is not effective and  doesn’t apply if borrowers are self employed or more than 25% of the borrower’s income is commissioned and/or self employment income
  • Borrowers with rental income from multiple rental properties do not qualify for W2 Only Income Mortgage

Advantages Of Qualifying W2 Only Income Mortgages

Qualifying W2 Only Income Mortgages is advantageous for mortgage borrowers who are purchasing a home or refinancing their current home where their income tax returns show losses due to un-reimbursed employee expenses which are shown on IRS TAX FORM 2106.

  • Advantages of qualifying W2 Only Income Mortgages is also for borrowers who have self employment losses on their schedule C of their income tax returns and which this loss is not their primary source of income

Un-Reimbursed Employee Expenses And W2 Only Income Mortgages

Borrowers who have un-reimbursed employee expenses on their income tax returns are workers who need to purchase their own work uniforms. Examples of such employees are the following:

  • Police Officers
  • Fire Fighters
  • Mechanics
  • Tradesman
  • Nurses
  • Doctors
  • Dentists
  • Pharmacists
  • Bus drivers
  • Truck drivers
  • Other workers who need to purchase their uniforms for work

Tax Returns Not Required

With W2 Only Income Mortgages, income tax returns are not required. If borrowers did not file their income taxes, that is alright with this loan program. Only the W2 income transcripts will be verified from the Internal Revenue Service.

Borrowers who also need to purchase tools and equipment for their work normally have un-reimbursed employee expenses.

Examples are the following:

  • Police officers need to purchase their guns and ammunition and work gear
  • Plumbers and electricians need to purchase tools and equipment for work
  • Mechanics need to purchase tools and equipment for work
  • This will also help borrowers who have part time  self employment income show losses.
  • This new tax mortgage rule, the lender only needs to verify and confirm your 4506-T, your @3s, and your 1099 income.

How Can I Qualify For W2 Only Income Loans

Here are the how you can qualify for W2 Only Income Home Loans:

  • FHA Allows W2 Only Income Loans
  • VA Allows W2 Only Income Loans
  • Fannie Mae Allows W2 Only Income Loans
  • Freddie Mac does not allow W2 Only Income Loans

W2 Only Income Mortgages gives borrowers who have a lot of un-reimbursed expenses the opportunity to qualify for a mortgage loan.

  • However, there are rules and restrictions on how borrowers can qualify for W2 Only Income Mortgages
  • Borrowers cannot have a full time self employed business
  • Borrowers cannot own 25% or more of a business that you own even though you are a W2 wage earner from their own business
  • Borrowers cannot have rental income
  • Gustan Cho and The Gustan Cho Team at USA Mortgage are expert in W2 Only Income Mortgages on FHA, VA, and Conventional Mortgages

Mortgage Borrowers who want to know more about our W2 Only Income Mortgages and see if they can qualify, please contact Gustan Cho at 262-878-1965 or text Gustan Cho on his cell at 262-716-8151 for faster response. Borrowers can also email us at We are available 7 days a week, evenings, weekends, and holidays. USA Mortgage is a 5 star national direct mortgage lender with no mortgage overlays on government and conventional loans. We offer non-qm loans where there is no waiting period after foreclosure, short sale, deed in lieu of foreclosure. USA Mortgage also offers bank statement mortgage loans for self employed borrowers.

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