The benefits of being self-employed are clear – more flexibility, being your own boss, deciding what you want to do and when you want to do it, and so much more.
As of late 2020, the number of self-employed workers in the U.S. was around 9 million. Side gigs and hustles have become so popular that it has turned into how some people are making a living. With all of the benefits of being your own boss, there are some drawbacks. One of those drawbacks is not having access to a conventional W-2. When applying for a mortgage, most financial institutions want to see a W-2, so if you don’t have one, you might be wondering how you can qualify for a home loan.
What are W-2’s?
A W-2, also known as the Wage and Tax Statement, shows the amount of taxes your employer withheld from your paycheck for the year. The IRS uses this form to track your tax obligations. So, how do you obtain a mortgage if you don’t have access to a W-2? Some home lenders will require you to show at least two years or more of tax returns to prove that you have a steady source of income. But at ALLIANCE, we’re different.
ALLIANCE Bank Statement Program: How the program works.
The Bank Statement Program at ALLIANCE allows eligible self-employed borrowers to use their bank statements to help verify their income instead of tax returns. The statements are used to prove the ability to repay the mortgage over time. We will take a look at the past 12 months of statements, your credit score and other assets to determine your ability to repay the loan. Securing a mortgage as a self-employed worker has never been easier!
Curious to see if you qualify? Send us a text to 806.798.4607 or click HERE to apply!