Financing in Monrovia>Question Details

Shawna, Both Buyer and Seller in Monrovia, CA

can i get a home loan without a tax return?

Asked by Shawna, Monrovia, CA Mon Nov 23, 2009

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Jenny A. Le’s answer
As a consumer you can get anything you want. So I caution you to proceed with careful research of your options.

Direct lenders (such as BofA, Wells Fargo, Citi Bank, etc.) require the following:
1. 2007 and 2008 full tax returns to pre-approve
2. IRS Form 4506-T to close the loan
3. if self employed, recent business tax returns, profit & loss statements, and 1099s

While non-tax return lenders still exist, they will charge HIGH FEES and HIGH INTEREST RATES to protect their risks of their inability to verify the borrower's income. Many of these type of loans were made during the real estate boom and many of them are currently in short sale or foreclosure status.
1 vote Thank Flag Link Mon Nov 23, 2009
Danny hit the nail on the head. What type of employ are you under? If it is anything other than W2 you would need the tax returns. Another issue typically uncovered is if you earn more than 25% as commission as this will also require full tax returns. Hope that helps.
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1 vote Thank Flag Link Mon Nov 23, 2009
If you're a salaried employee, you are typically not req'd to produce tax returns to qualify. In lieu of tax returns, you will need to provide W2s for the past 2 yrs. However, most lenders are now also requiring an executed IRS Form 4506-T which authorizes them to pull electronic transcripts of previous 2 yrs tax returns to verify income w/ what was provided on the loan app.
1 vote Thank Flag Link Mon Nov 23, 2009
I believe it is possible. Although banks are way more conservative these days, there are still loans available like their were at the height of the market. They are just more difficult to get, requiring higher FICO scores & much larger down payments.

I am not a loan broker and I suggest you speak with one, my lender has been in the biz 30yrs, you can send her an email, she is usually quick to respond: (Arlene Spellman)

The keywords you want to ask her about are "NO DOC / LOW DOC loans" Also "NO INCOME VERIFICATION OR ASSET VERIFICATION LOANS"

Again, these loans still do exist, but you're going to be bringing in a Hefty down payment, maybe as high as 30%. I am unsure about FICO score minimum, just ask Arlene about it.
1 vote Thank Flag Link Mon Nov 23, 2009
There are still some counties in CA that are stated income loans. In other words, you may state your income without verification. The lender may still pull your returns to ensure that you've claimed some form of income but they will not look at the income itself. You'll have to ask a broker to find out which counties fall into that scenario or call PSC MORTGAGE BANCORP Mr. Rene St Lanne 760-910-3838. I believe it's Southern Cal.
0 votes Thank Flag Link Mon Nov 23, 2009
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