Ways around Providing W2s for FHA loan?

[Anonymous]

Ok, my credit is now in good standing to apply for a FHA LOAN.

I haven't applied yet... still shopping for some homes and areas in GA.

However, I have one thing that will probably stand in the way of me getting a fha loan.

NO w2's.

I have a job, plus I have a small side business... that I just registered and got an EIN for like 3 months ago.

Now, with my job which is a web designer, I've been working with this company for about 2 years. However, the first year and a half.... no taxes was taking out, it was a cash job. I made commission only for about 8 months which was cash or check by the owner. Then, after I started as a web desinger and still wasn't making much in the beginning, just cash for each website I designed . Now I am a top designer and programmer and now the company is in good standing and takes taxes out of our checks and we will be w2 employers for this year.

However, my income is verifiable.... and I make around $1800 every two weeks and I have bank statements showing consistent deposits for 5 months. Plus deposit from my side business. I've spoke with my boss (owner) and told him about what I was trying to do... he told me that he will provide the loan officer with any information they ask for, with no problem. I've been working there for 2 years and 7months... so I have some time with the job. I just wasn't a w2 employer for the whole two years... so according to the Paystubs it will look like I was only employed for a few months. 

I'm trying to get this house by May - June 2016. which is 3-4 months from now.

The price range I'm looking to pay for a home is $40,000 to $60,000 or maybe $70,000 depends. 

What can I do to get around the w2's requirement?

[StartingOver10]

You should have received 1099's from your employor and filed taxes on the amount you received each year for the past two years.

If you did not get 1099's, then go back to your employer and have them prepared for you so you can file taxes for those years. 

FHA doesn't require you to be a W-2 employee, 1099's are fine. You will have to supply your tax returns anyway for those years in order to get approved for an FHA loan. It is part of the standard approval process.

[ezdriver]

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@Anonymous wrote:

Ok, my credit is now in good standing to apply for a FHA LOAN.

I haven't applied yet... still shopping for some homes and areas in GA.

However, I have one thing that will probably stand in the way of me getting a fha loan.

NO w2's.

I have a job, plus I have a small side business... that I just registered and got an EIN for like 3 months ago.

Now, with my job which is a web designer, I've been working with this company for about 2 years. However, the first year and a half.... no taxes was taking out, it was a cash job. I made commission only for about 8 months which was cash or check by the owner. Then, after I started as a web desinger and still wasn't making much in the beginning, just cash for each website I designed . Now I am a top designer and programmer and now the company is in good standing and takes taxes out of our checks and we will be w2 employers for this year.

However, my income is verifiable.... and I make around $1800 every two weeks and I have bank statements showing consistent deposits for 5 months. Plus deposit from my side business. I've spoke with my boss (owner) and told him about what I was trying to do... he told me that he will provide the loan officer with any information they ask for, with no problem. I've been working there for 2 years and 7months... so I have some time with the job. I just wasn't a w2 employer for the whole two years... so according to the Paystubs it will look like I was only employed for a few months. 

I'm trying to get this house by May - June 2016. which is 3-4 months from now.

The price range I'm looking to pay for a home is $40,000 to $60,000 or maybe $70,000 depends. 

What can I do to get around the w2's requirement?

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Information missing ...

As a web designer, are you self employed? Who is paying you? Sounds like you have been doing tech services work and collecting money directly from individual customers/clients. If yes, that income must be reflected in your tax returns and you will need to show two to three years oftax returns for that income to be considered.

Side job? What kind of work? How do you get paid?

An EIN is relevant for creating a legal entity through which business is conducted. Are you legally allowed to work in the US? If a citizen, then you have your social security number right?

Fill in the blanks and you will receive more useful feedback/recommendations.

[Imperfectfuture]

I have verifiable income, and a side business started in 2015. Each year, went to IRS web site, put in income from dividends, investments, etc, told not to file.

However, I had to get business license to do legal business, and file taxes with city and state. I will also be filing taxes because self employment over 400 per year needs to be filed.

You did not keep records of business activity? As mentioned above, you need to file tax returns for years you did not file. You will owe penalties. If the employer verifies income, you need to file those taxes. Might want to delay mortgage until you have all taxes filed. And, paid.

[Anonymous]

An FHA loan is backed by the US government and is made available because of taxes. My guess is, not filing taxes could be an issue.

[leahkline86]

Hate to tell you this, but your first step will be filing any backed taxes. You will not be able to receive a mortgage without proof of filed (and paid, if necessary) taxes. Good luck with everything!