Using Leases To Prove Income To Lenders

[William Coet]

Hello,

-Can leases be used instead of tax returns to prove income to lenders?  

-For an equity loan on an income property, can leases be used by themselves to prove income?

-Do banks always require tax returns?  Do private lenders always require them?

Thank you in advance for any replies. 

[Kent Nielson]

I can only help with the first and last question from a conventional lender standpoint, not sure about private lenders. 

We will always require tax returns if you have rental property and are trying to use it for income to qualify for a loan.  There is also a good chance they will want a copy of the current lease.

As far as banks requiring tax returns. If you are a straight up W2 employee, if your credit is good enough you might get by with just supplying your W2s. If you are self employed, bad credit, have other properties, etc...they will probably want tax returns.