Lending Qualifications No W2

7 Replies

Hello Bigger Pocket Family !!! This question has been a lingering one, and I have yet to see a clear answer on this one in other forums. I have a question for all you lenders out there. If there is enough proof of assets in a savings account to purchase a home in cash ( in some cases enough assets to purchase 2 or 3 of like properties in cash ) will I be able to get a loan without a current w2? There is proof of work experience for the past 11 years, but within the last two years the w2 amount is lower. There is also ZERO DEBT, NO CREDIT CARDS, NO CAR LOANS, STUDENT LOANS,PHONE PAYMENTS, ETC.. ZERO DEBT. With a Credit Score of 700+ Will I be able to get into a 30 year loan? Thank you in advance, I’m hoping to get a solid answer on this one. Thank you .
 

Tarik! Thank you for the response , appreciate it. It seems like I was coming to a wall when it came to having a W2, I will have to look into asset based lending in Washington State, more specific Spokane, Washington. I am on my path to obtaining 10 doors in 10 years, this was my current road block. I’m sure I’ll hit some more down the road, but this was a first. Thanks for the response again, and if anyone else would like to chime in on SPECIFICATIONS on asset based loans.

Yes, there are such loans out there. One type is called "No Doc" and here is a link to one bank that offers it: No Doc loan

I did one some years back when I had my own business, no W2's and didn't have two years history with my business to show. Back then, I tried mortgage brokers and one gave me the name of a banker with a bank in my neighborhood, who specialized in it, 3 blocks from me, and the bank never advertised they do No Docs, so I never called them. A mortgage broker can tell you who in your area does it, or google "No Doc loans".

Good Morning Frank,


Thank you for the response on a Friday morning! Appreciate that, so it seems like it is time to start SHOPPING FOR LENDERS. Since the investment a would be in the Spokane area it sounds like it’s best to start shopping locally for lenders, when it comes to REALTORS it has been an up hill battle. It seems like a lot of them want a CONVENTIONAL SALE, and dealing with an INVESTOR is a headache ( at least that what it has felt like in the SPOKANE AREA). Truly appreciated the quick response , this has been a wall I have been hitting but I know it could be dealt with. 

Hi @Anthony Minutoli , you definitely have some options here. The main question I have is are you looking to purchase as a primary or investment? On the primary side there are plenty of non-qm options, but depending on the amount of assets you could even go conventional with asset depletion. On the investment side (which I'm guessing this is your primary focus), typically the rental loans are DSCR and require no personal income verification. So if the property cash-flows and you have the down payment you're usually good to go.

I totally understand your battle when working with realtors. If I may, I recommend getting in touch with @Sean Tobin . His team specializes in the investment market here in Spokane. 

Good luck on your journey to 10 doors in 10 years!

As others have mentioned there are options to get this done without W2 income or low W2 income based on your assets. The thing that will determine which lender(s) will be best would be based on if this is an owner occupant loan or an investment loan. If owner occupied make sure not only to find a company that can do this but that you are working with someone that has done this type of loan and knows how they work and how to structure the loan. If an investment property than your options will open up a lot as there are a lot of NON-QM and hard money lenders that are asset based and looking at they property and its cash flow vs your personal income. 

I hope this information helps. 

Originally posted by @Anthony Minutoli :

Hello Bigger Pocket Family !!! This question has been a lingering one, and I have yet to see a clear answer on this one in other forums. I have a question for all you lenders out there. If there is enough proof of assets in a savings account to purchase a home in cash ( in some cases enough assets to purchase 2 or 3 of like properties in cash ) will I be able to get a loan without a current w2? There is proof of work experience for the past 11 years, but within the last two years the w2 amount is lower. There is also ZERO DEBT, NO CREDIT CARDS, NO CAR LOANS, STUDENT LOANS,PHONE PAYMENTS, ETC.. ZERO DEBT. With a Credit Score of 700+ Will I be able to get into a 30 year loan? Thank you in advance, I’m hoping to get a solid answer on this one. Thank you .
 

Anthony

There are asset based loan products for owner occupied properties. If that's what you're going for, I would recommend that. If just trying to buy an investment property, find a good broker and just do a DSCR product. No income verification required. I say the DSCR product is the way to go because sometimes, with declining deposits, the loans can get mired down in underwriting and the rates aren't that much better than no income at all. @Tarik Turner is well versed in both and can get the ball rolling.

Best of luck

Stephanie