Why Lenders Need W2’s/1099’s #fhaloan #firsttimehomebuyer #homebuyer #homeloans #interestrates

When tracking someone's work history for a home loan, lenders generally have to look at the last 24 months of W2s or 1099s. Now I understand sometimes people just get the tax returns in place of this and the tax returns do show like the lump sum W2 or 1099 income. The big difference is the actual W2s or 1099s. They show exactly what employer that income came from. So the person could have had multiple jobs and multiple different W2 places on the tax return. It just lumps it all together. It doesn't really say where you work during that year. That's the difference. That's the key. For the W2s or two 99s. It actually traces it back to the exact employer that income came from. So that's why they're needed as a workaround. People can go to the IRS website and pull their W2 wage and earning tax transcripts. That's kind of in place of the W2s if you need to. But there is a reason why the government requires lenders to get the actual W2s or 1099s.