Income documents required by all lenders

The most common income documentation required by lenders are the following:

Full time Job:

  • Most recent 2 year W2
  • Most recent paystub to include 30 days earning. If you get paid weekly, lenders want to see 4 paystubs to reflect 1 month worth of income. If you get paid every other week, lenders want to see 2 paystubs

Second Job:

  • Most recent 2 years W2
  • Paystubs to include 30 days earning
  • Written verification of employment completed by your employer. Lenders do not have a problem with borrowers having 2 jobs. However, they want to know if you have at least 2 year history of working 2 jobs

Self-Employed:

  • Most recent 2 year tax return including all schedules
  • CPA letter from your accountant to support that your business is still currently active

Rental Income:

  • In order to use rental income, borrowers must have a minimum of 2 year history of receiving it. Therefore, lenders want to review your most recent 2 years tax return.
  • If borrowers purchase rental property less than a year and no rental income is reported on tax return yet, most lenders would be ok to accept a copy of lease agreement and a copy of the cancelled checks for the deposit

3 thoughts on “Income documents required by all lenders

  1. jebs on

    We are in a process of home loan and my fiance did not work in 2012, but work full time in 2013, and 2014……. Lenders wants a copy of 2013 and 2012. He did not file income tax for 2012 because he didn’t have any income. Will this affect his loan or will the UW accept an explanation? Also, 2013 and 2014,not enough?

    • Underwriter on

      They ask for 2012 and 2013 because they assumed that 2014 has not been filed. To save yourself some trouble, provide 2013/2014 and you should be fine. If your lender order tax transcripts down the line and discovers no income was reported on 2012, a simple letter of explanation should take care of it.

      • jebs on

        We are very nervous about this. We are due to close on march 31st. All his financial stuff are good to go and he already has been conditionally approved. UW just wanted proof that his truck will be paid off on/before closing and we did pay it off few days ago. It would be devastating if they decline the loan because he didn’t have income in 2012. Crossing our fingers

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