Documents Required for No W2 Loans
What is W2?
A W2 document is a form that contains the information you’ll need to submit your salary or wage information to the Internal Revenue Service (IRS) when filing your taxes. The percentages of local, state, and any taxes taken from your salary may also be listed on your W2. You’ve most certainly received a W2 if you’ve ever worked full-time or a part-time job. A W2 form is typically issued to employees who have earned more than $600 from their employer.
Loans without W2
It may take more paperwork to apply for house loans if you don’t have a W2, but it is not unattainable. There could be alternative options if you are a person who works for themselves, has their own company or firm, or has not received a traditional W2 for any reason whatsoever. Before you lose hope, contact a reputable lender near you. If you reside in Ft Lauderdale, Atlantic Home Capital provides no W2 loans and multiple other services.
In this blog, we’ll list down the documents you’ll require and some questions you might have to answer in order to acquire a no W2 loan.
Documents Required for No W2 Loan
1. Loan Application
To begin the loan procedure, every lender has their own application, which may differ from each other. For example, if you’re lending from a lender online, the application procedure is frequently completed fully online. If you’re getting a loan from a bank, you can usually fill out your paperwork in person and online.
Your personal details, like your identity, name, phone number, age, date of birth, social security number (SSN), and permanent address will almost always be requested in your loan application. It may also be necessary for you to specify the required amount and purpose of the loan.
Some lenders might ask you to provide additional financial information, such as your monthly gross income, monthly rent payment, mortgage payments, etc. Make sure you fill the details required in the form accurately and that you don’t lie about anything. Any discrepancies, if found, might lead to the cancelation of the application, and some can even lead to legal charges.
2. Proof of Identity
Apart from obvious issues such as identity theft, banks or other lenders need to be able to confirm your identification to see if you’re a US citizen or a permanent resident or if you’re 18 or above. They may also check to see if you have any active bank account(s). In most cases, you’ll need to show two kinds of identifications, for example:
- Passport
- Driver’s license
- Citizenship certificate
- State-issued ID
- Military ID
- Social security card
- Birth certificate
In most circumstances, you may duplicate the two pieces of identification so that you don’t provide the lender with your original documents. Once you’ve done that, make sure you save the originals somewhere safely stored.
3. Income and Employer Verification
No W2 loans differ from other loans, such as mortgages and car loans—they are not backed by any collateral. This enhances the lender’s risks and emphasizes the need to ensure that you do have a consistent income to pay back the loan.
If you have a typical job, the following information and documents can usually be used to verify your earnings:
- Paystubs
- Bank statements
- Tax returns
- Contact information of the employer
If you’re a business owner or self-employed, the following information and documents can normally be used to authenticate your income:
- Bank statements
- Income tax returns
Access your payroll company’s online database/website or call their HR department to locate your tax forms. If you deal with tax professionals, they may assist you in locating the necessary tax paperwork. You can also download your bank statement copies after accessing your account online. If you fail to find the statements, contact your bank for assistance.
4. Proof of Address
A lender can use verification of your standard of living to establish how steady your life is. You can generally choose from the following options:
- Utility bills
- Mortgage statement
- Rent or lease agreement
- Insurance proof
- Car lease/rental
- Voter registration
- Debt statement
- Bank and credit card statements
- Property tax receipt
If you need to change your address, the United States Postal Service can assist you in changing and confirming your residential address. While going online is the quickest and most convenient option, you could also visit your nearest post office to fill out a form in person.
Questions You Might be Asked by the Lender
1. What’s Your Reason for Borrowing Money?
No W2 loans are adaptable, which means you can spend them any way you want. Perhaps you’d like to combine high-interest debt, or maybe you need money for unexpected car maintenance or even a home renovation project.
Whereas most lenders are not interested in how you’ll spend the loan, knowing what you want to do with it can help them offer the ideal loan package for you.
2. What Is Your Credit Score?
It’s critical to determine your credit score before applying for a no W2 loan. This number might help you figure out how probable it is that a particular lender will accept you.
Although some lenders will only give loans to clients with excellent credit scores, some are more tolerant and ready to take chances on people with less than ideal scores. Please remember if your score is low, you could have to settle for a higher premium/interest rate.
3. How Much Can You Afford and for How Long?
Examine your finances to determine how much you can easily afford to cover on your no W2 loan every month. Think about how long you want to make payments. Remember that you’ll have to pay the lender interest for every dollar you borrow. Whereas a long-term loan has lower payments, it also has a higher interest rate, so you must decide what suits you better.
At Atlantic Home Capital, we would love to help you with any loan requirements. We offer no W2 loans to help you build your dream house, get a dream car, or do any other thing you want. Furthermore, we have other types of loans available as well, like FHA loans, VA loans, or modular mortgage loans. Contact us now to learn more.
