Home loan w/ 1yr w2? Is it possible?

[Vegas247]

Is it possible, with high mid fico score above 750 and 20% down good income to debt ratio and buy a house with 1 yr W2's? 30yr coventional loan is what I want.

[BrianB_The_Loan_Professor]

Yes it is possible  20% down makes banks a LOT more flexible - 

Did you work prior to this last year? Did you go to school? 

Work histpry is cumulative and not based just on current employment

if you have been in the same line of work and changed jobs that is fine for the 2 year requirement

also if you were in school prior to the job and the school was related to the job that also counts

Good Luck

Brian

[Vegas247]

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@BrianB_The_Loan_Professor wrote:

Yes it is possible  20% down makes banks a LOT more flexible - 

Did you work prior to this last year? Did you go to school? 

Work histpry is cumulative and not based just on current employment

if you have been in the same line of work and changed jobs that is fine for the 2 year requirement

also if you were in school prior to the job and the school was related to the job that also counts

Good Luck

Brian

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Thanks Brian for responding.....I've been in the same industry for 14 years.....middle fico 750....20% down...I've asked maybe 5 Loan Officers from Wells Fargo, BofA, Local Credit Unions.....1 thing they all say is if the automated approval comes back requiring only 1 year W2, then I am in!!!!! But how often does that happen? Convention 30yr fixed 0 points is what I want....No Job in 2012....Last 4 months of 2012 was an apprentice for the Company I work for now....

[BrianB_The_Loan_Professor]

In a case similar to yours all I had to do was go back further to document the income and work history 

so instead of the previous two years we went back three years to satisfy the requirements....

were you w2  prior to this or were you self employed?

Either way it shouldnt matter?

so long as you can document that you have been in the industry and have the history

Any bank will question why you were out of work but thats usually not a deal killer?

Brian

[DallasLoanGuy]

even if the lenders allows 1 w-2.... they will still have tax returns and you will need to explain the job gap.

[ShanetheMortgageMan]

Usually when there is a job gap longer than 3 months, 6 months back at the job does the trick.

[Peter1142]

They will pull your last 3 years of tax transcripts and they will need to back up your story.

I don't know how the automated conventional approval with only 1 year required works, but speaking from experience with an FHA loan, expect them to dig under every rock of your employment history until they have satisfactorily documented the employment history they require, which in the case of FHA loans, is 2 years continuous employment (which may be before the long gap if you have 6 months back at work in the same line of work.)

Good luck! I'm sure the 20% down will make underwriters a little more flexible, but there are still basic guidelines they need to meet to sell the loan.