Your source of income plays a major role in the mortgage process. Find out what mortgage documentation you’ll need to provide from our list below.
For any borrower who is employed (not self-employed), provide the following:
U.S. Individual Income Tax Returns (IRS Form 1040) for the two most recent tax years, including all schedules (the federal portion only).
If you have not filed for either of the two most recent tax years, provide a copy of the Application for Extension of Time to File U.S. Income Tax Return (IRS Form 2350) and a copy of your most recently filed return. (Note that the Request for Transcript of Tax Return [IRS Form 4506-T] does not provide complete tax returns. You must provide complete tax returns to fulfill this requirement.)
For each current job held by a borrower who is employed (not self-employed), provide the following:
Pay stubs covering the last 30 days.
Wage and Tax Statement (IRS Form W-2) for the two most recent tax years.
For any borrower that is self-employed, or owns more than 25% of any company, provide all of the following:
Business tax returns (IRS Form 1065, 1120, or 1120-S) for the two most recent tax years, including all schedules.
For any borrower that is a partner in a business and receives a Schedule K-1 Partner’s Share of Income, Deductions, and Credits (IRS Form 1065), provide the following:
Schedule K-1 Partner’s Share of Income
Deductions
Credits (IRS Form 1065)
For any self-employment income, provide at least one of the following:
Regulatory agency document that includes the name of the business and information indicating the business is active and in good standing. An image from the regulatory agency website is acceptable.
Business license that includes the name of the business and information indicating the business is active and in good standing. An image from the regulatory agency website is acceptable.
Letter from the Certified Public Accountant that includes the name of the business, a certification that the business is active and in good standing, and verifies the self-employed period stated on the loan application.
For any pension income, provide all of the following:
Pension award letter that includes the benefit amount. Letter must state that the benefit will continue at least three years from the date of the new mortgage.
Bank statements for the most recent two months showing receipt of pension income.
Miscellaneous Income Form (IRS Form 1099) for the pension income for the two most recent tax years.
For any borrower that receives Social Security income, provide all of the following:
Social Security Benefit Statement (Form SSA-1099) for the most recent tax year.
Bank statements for the most recent two months proving receipt of Social Security benefit.
For any borrower that receives Social Security Disability Income, provide all of the following:
Social Security Disability award letter confirming income will continue for at least three years after the date of the mortgage application. If no award letter is available, we can accept a letter from a physician confirming the disability is permanent.
Bank statements for the most recent two months proving receipt of Social Security Disability Income.
Social Security Benefit Statement (Form SSA-1099) for the disability income for two most recent tax years.
For any borrower that receives child support income, provide all of the following:
A birth certificate for each child receiving child support.
Divorce Decree, Separation Agreement (if the divorce is not final), Court Order, or Legal Agreement that indicates payment of child support, amount of the award, and the period of time over which it will be received (to verify child support will continue to be paid for at least three years after the date of the mortgage application).
Bank statements or copies of checks deposited for most recent 12 months or applicable period showing receipt of payments. Both must indicate the originating entity. Check images must include front and back and indicate checks have cleared.
For any borrower that receives alimony or separate maintenance income, provide both of the following:
Divorce Decree, Separation Agreement (if the divorce is not final), Court Order, or Legal Agreement that indicates payment of alimony or separate maintenance, amount of the award, and the period of time over which it will be received (to verify alimony or separate maintenance will continue to be paid for at least three years after the date of the mortgage application).
Bank statements or copies of checks deposited for the most recent 12 months or applicable period showing receipt of payments. Both must indicate the originating entity. Check images must include front and back and indicate checks have cleared.
