Getting a mortgage with no w2 or wage income?

Question

I'm designing a ten year plan. At some point, I'd like to do RE full time. Once I got 7 or so properties, I'd be able to still have enough income leftover to expand my empire. But is it possible to get a mortgage without any w2 income? I read some posts on another forum saying this was close to impossible.

Account Closed · Answer

It is near impossible. When I immigrated here from Canada I obviously didn't have 2 years worth of tax returns. Banks wouldn't even give me a loan even though I offered to give 50-75% down payment.

Yes, even at that kind of LTV they wouldn't lend without W2 or 2 years worth of tax returns. I thought it was stupid so I asked several lenders / mortgage brokers (in 2 states) and they all said the exact same thing.

Is it ridiculous? Yep. Do they still do it? Yep.

Alex Silang · Answer

When I said 7 properties, I meant triplexes. So lets say 21 doors.

$150/mo profit per door.

21 x 150 = $37,800

John Rooster · Answer

Yes, it is very possible to get a conventional loan without w2 income, I have done it. You still need income reported on at least two years of tax returns though. As I read you plan there, I am doubtful that your plan is going to allow you to qualify for a conventional loan if you are just doing buy and hold investing. Because of the way Fannie/Freedie calculate rental income, you are not going to have enough income from 7 leveraged rentals to qualify for a conventional loan.

Bill Gulley · Answer

No, it's not impossible, as mentioned, use tax returns. As to stated income, don't let your mouth over load your ability. All loans are subject to review, you'll be signing authorizations to tax returns, while you may not hit your stated income on the head, if you're too far off you may have problems.

With 7 doors, you'd need to own with very little owing to retire or go to RE full time and qualify for new loans at 75% of that income. Best to lay out a plan and go talk to your lenders to help set your goals. :)

Account Closed · Answer

After 2 years, sure.

My point was only that like the original poster was asking, getting loans without W2s is almost impossible unless you have other references.

In my case, they would have given me a loan if I had a job at McDonalds scrubbing toilets, but they wouldn't give me one being self-employed even if I made more.

Samantha M. · Answer

After 2 years of tax returns, shouldn't you be fine?

Edward Burns · Answer

For most lenders, I would expect them to require some form of verifiable income, just listing income as miscellaneous on income tax returns may not work.  But showing income because a trust fund, dividends from long-term stock, distribution from partnerships may qualify.

Wayne Brooks · Answer

As long as you have reportable income, from your tax returns, steady for a couple of years you should be okay.  Verify with a mortgage lender.

Getting a mortgage with no w2 or wage income?

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