+1 vote
I was due refunds but never got around to filing because of personal reasons.  I have all my W-2's available.
asked Jan 29, 2018 in VA Loans by Lynn

2 Answers

+1 vote
Hi Lynn,

That's a good question. And here's the answer. A form 4506-T simply allows your lender to verify with the IRS that the forms you supply to prove your income match those in the possession of the IRS. The 4506-T form says:

Form W-2, Form 1099 series, Form 1098 series, or Form 5498 series transcript. The IRS can provide a transcript that includes data from these information returns. State or local information is not included with the Form W-2 information. The IRS may be able to provide this transcript information for up to 10 years. Information for the current year is generally not available until the year after it is filed with the IRS. For example, W-2 information for 2011, filed in 2012, will likely not be available from the IRS until 2013. If you need W-2 information for retirement purposes, you should contact the Social Security Administration at 1-800-772-1213. Most requests will be processed within 10 business days.

From a practical standpoint, many financial institutions do not require a 4506-T for W-2 employees. They can verify your income by contacting your employer (VOE, or Verification of Employment). The VA does not require a 4506-T. It says:

VA guidelines for standard and alternative documentation do not include a requirement to obtain IRS Form 4506-T. This
applies to both W-2 wage earners and self-employed borrowers. The Lender’s Handbook references IRS Form 4506-T in Topic 8 of Chapter 4, Documentation for Automated Underwriting Cases (AUS). The IRS Form 4506-T requirement is sometimes listed as a condition on the AUS feedback certificate, or imposed during a manual underwrite by the lender.
It is important to note that even if this condition exists, it would be considered an investor or lender overlay exceeding the guidelines established by VA.

I suggest that you contact several competing lenders (easy to do right here) https://themortgagereports.com/ratequote and simply tell them you are a W-2 employee and explain your situation. Good luck, and thank you for writing.
answered Jan 30, 2018 by GinaPogol (47,650 points)
0 votes
There are W2 income only mortgage programs with FHA, VA, and Conventional Loans.  No tax returns required.  W2s will be verified. If automated underwriting system approval does not condition for tax returns, loan officer should not submit tax returns.

Gustan Cho NMLS 873293
answered Feb 6, 2018 by GustanCho (106,540 points)

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