If you’re in the process of buying a house, you’ve likely been asked to present your W2, a federal wage and tax statement. But what happens if you don’t have a W2? Can you still buy a house?
The answer is yes, and in this article, we’ll show you options for applying for a mortgage with non-traditional employment situations.
How To Buy a Home Without a W2
When applying for traditional housing finance, like a mortgage, you will be required to present your W2 as proof of your wages earned and signed off by your employer. However, those who don’t have employers or have non-traditional employment situations can apply for mortgage options without a W2.
- Bank statement Programs. Also known as bank statement loans, these simply mean you document your income with bank statements instead of tax forms. They are a great option for self-employed home buyers, business owners, and investors. So, if you have a strong cash flow and can provide anywhere from 12 to 24 months of bank statements, you may be eligible for this type of loan.
- Asset qualifier home loan. If you don’t have a traditional income but you have significant assets you might be able to apply for an asset-based loan. When applying for this loan you will need to supply things like a list of your assets, owned real estate, investment portfolios and savings accounts. You will need at least $500,000 in assets to qualify for a loan of up to $3 million.
- Non-qualified mortgage. A non-qualified mortgage is a type of mortgage that does not conform to the standards laid out by the Consumer Financial Protection Bureau (CFPB). So, if you don’t qualify for a traditional mortgage, you can apply for one. To be eligible, the lender will look at things like your debt-to-income ratio (DTI), credit score, current income, assets and current debt obligations to determine whether you will be able to repay this loan back.
- Co-Signer. Should you not qualify for the other loan options, you could also get a mortgage with a co-signer who does have a W2 income. Your co-signer will agree to be responsible for your loan repayments should you not be able to make them.
- Foreign National Program. If you don’t reside in the U.S. but you still want to purchase real estate, you may be eligible for the Foreign National Program. Depending on the projected cash flow of the property, you may qualify for a loan between $75,000 and $1.5 million.
Get In Touch With Your Mortgage Experts in CA Now
Are you ready to apply for a non-traditional mortgage to purchase your house? Contact us at Granite West Funding to start your application today. To begin the process or to schedule a free consultation, call us at (559) 540-2275.
