We are at that special time of year when income calculations and lender requirments will be a little funky until after 4/15/11. Here is what the investors are requiring based on an individuals situation.
Effectively immediately the tax return and 4506 (transcript) guidelines are as follows:
•· For all loans submitted prior to 04/15/11 and the borrower has not filed their 2010 tax returns:
•Copy of the 2009 & 2008 tax returns; and,
•For salaried borrowers: a 2009 and 2008 tax transcript, current paystubs, 2010 and 2009 W2's;
•For Self-Employed borrowers: a 2009 and 2008 tax transcript and a 2010 and 2011 P&L.
Please note that for self employed borrowers the 2010 tax returns can not be used for income calculations unless the income is declining. All self employed increasing income must be documented with tax transcripts.
- For all loans if submitted prior to 04/15/11 and the borrower has filed their 2010 tax returns:
- Copy of the 2010 & 2009 Tax Return; and,
- For Salaried Borrowers: a 2010 and 2009 tax transcript, current paystub and 2010 & 2009 W-2's;
- If 2010 showing "No record or return filed", 2009 & 2008 tax transcripts.
- For Self-Employed Borrowers: a 2010 & 2009 tax transcript and a 2011 P&L.
- If 2010 showing "No record or return filed", 2009 & 2008 tax transcripts.
Please note that for self employed borrowers the 2010 tax returns can not be used for income calculations unless the income is declining. All self employed increasing income must be documented with tax transcripts.
Please see below if borrower filed an extension.
- If a borrower has filed an extension, the following must be provided:
- Evidence that the extension was filed and evidence of tax payment; and,
- A 2010 Tax Transcript showing "No record or return filed"; and,
- Copy of the 2010 & 2009 Tax Return; and,
- For Salaried Borrowers: a 2009 & 2008 tax transcript, current paystub and 2010 & 2009 W-2's;
- For Self-Employed Borrowers: a 2009 & 2008 tax transcript and a 2010 & 2011 P&L.
Please note that for self employed borrowers the 2010 tax returns can not be used for income calculations unless the income is declining. All self employed increasing income must be documented with tax transcripts.
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