A Year-End Paystub in Lieu of a W2

Did You know that we will accept a year-end pay stub instead of a W2?

This comes in useful as we are now in early 2020 just before tax filing time and many employers are unable or unwilling to complete detailed VOE’s breaking out various income types such as overtime, commissions, bonus, etc.

Employers that do not use the Work Number or have a salary key will also a pose an issue so a year end paystub or W2 transcripts are both acceptable methods of income documentation.

REMINDER: We DO close on VOE’s (verification of employment) and VOD’s (verification of deposit) instead of traditional pay stubs and bank statements.

IMPORTANT:

Below are the triggers for when 4506T results need to be validated:

FHA & VA loans:

When income OTHER THEN W2 OR 1099 income is used to qualify ( i.e., SS, SS Disability, Pension, etc.)

Self-employed income: we require the personal AND business tax returns to validate.

• Handwritten paystubs
• Non-arms length transactions
• Borrowers working for family members
• Loans pulled for QC review

Conventional:

• Handwritten paystubs
• Non-arms length transactions
• Borrowers working for family members
• Loans that are pulled for QC review

Originators must provide validated 4506 results from an acceptable third party vendor OR your credit vendor in most cases provides that service as well. Results are needed prior to closing.

Any question or more information about how we can help with qualifying you for a loan, please contact one of our professional, experienced loan consultants.