Are tax returns need for a refinance

___

Someone once asked me: Is it possible to refinance a mortgage without showing income tax returns?

Yes. In most cases, a lender will require tax returns only when a borrower is self-employed, or has rental/partnership income or in some cases someone whose income is largely paid via bonus. The income documentation needed for a wage-earner is typically a recent pay stub showing year-to-date earnings and, depending on the findings generated by the automated underwriting system, possibly the previous year's W-2.

If you're self-employed, you will probably have to provide tax returns to verify your income. The "stated income" loans that got us into so much trouble leading up to the meltdown of 2008 are no longer available.

Most self-employed borrowers take advantage of every possible write-off to keep their tax liability low. This may come back to haunt them, however, when they go to apply for a mortgage. As the adage goes: Self-employed people either like their tax bill or their mortgage rate, not both. ?

Hope this is helpful.


All information furnished has been forwarded to you and is provided by thetbwsgroup only for informational purposes. Forecasting shall be considered as events which may be expected but not guaranteed. Neither the forwarding party and/or company nor thetbwsgroup assume any responsibility to any person who relies on information or forecasting contained in this report and disclaims all liability in respect to decisions or actions, or lack thereof based on any or all of the contents of this report.

Paramount Residential Mortgage Group
Corporate NMLS ID:  75243
Privacy Policy:  https://www.prmg.net/privacy-policy/

Brian Voytko

Mortgage Advisor

NMLS: #437292

The Mortgage Whiz

Company NMLS: 338923

Cell: 215-407-3832

Email: BVoytko@PRMG.net

Web: http://www.mtgwhiz.com

Avatar

Brian Voytko

___

Mortgage Advisor

NMLS: #437292

Cell: 215-407-3832


Last articles

___









Load more

Mortgage Calculator

___


Scroll top