When applying for a home loan in the US, would banks care if part of?
When applying for a home loan in the US, would banks care if part of past income came from unemployment benefits? Would they find out because they review each line on W-2, not just the AGI? would banks care if part of past income came from unemployment benefits? Yes, mortgage lenders will care if past income came from employment benefits. I would put the reasons why into 2 categories Category 1 You need the unemployment income in order to qualify for the loan. Some jobs will have layoffs built into the structure of employment. Seasonal workers or workers who are traditionally laid off during parts of the year that can verify consistent employment and income over the last 2 years and can provide evidence that the jobs will be available to them in the coming year, can in some cases use unemployment income in qualifying. Category 2 mortgage lenders need to paint a minimum 2 year picture of your employment history. You provide W-2s and/or 1099s to show that history. If you said you have 2 years uninterrupted employment history and somewhere within the 2 year history you received unemployment, that would be a concern. Would they find out because they review each line on W-2, not just the AGI? The W-2 from your employer would not show an instance of unemployment unless your income showing on the W-2 is inconsistent with being employed for a full year. Yes, I will look at your paycheck stubs, year to date and annualized along with W-2s and tax returns if I get them. Im not aware of any line item on the W-2 that shows your income was somehow broken up by unemployment or that you filed for unemployment. We collect enough information to catch lies without needing the review of one single document in the loan package. Once the lie is verified, your file is tainted. I might not deny your loan right off the bat, but experience has shown me over the years that the one lie or the leaving out of one detail purposefully will show somewhere else in the file and your loan will be denied. Even in this era of underwriting algorithms and credit score minimums where you may meet the standard. I can still deny the loan. Last comment, lying on a mortgage loan application is a felony. If you dont believe me, mark this date, February 16, 2021. Lets see how Trump fares in the months to come. Think Capone and the I cant get you this way. But I can get you THIS WAY.