TAX RETURN REQUIREMENTS FOR MORTGAGES
TAX RETURN REQUIREMENTS FOR MORTGAGES
Tax season opened up this year on January 29th for everyone to hope for a refund or fear that you owe.
The deadline this year falls on Monday April 15th so just know you have an entire weekend prior to get yours done. October 15th is this year’s deadline for extensions.
HERE ARE SOME THINGS YOU NEED TO KNOW:
FANNIE MAE
On and after April 15th for loans with an application date prior to April 15th and up to disbursements on June 30th we will accept a signed letter from you stating returns have not been filed yet in lieu of a valid extension and transcripts confirming no record found. These items will be required after June 30th.
FREDDIE MAC
As of April 15th for application dates prior to April 15th and closings on or before May 30th you can proceed with 2022 returns IF 2023 returns have not been filed.
Now for those that have filed but no transcripts exist yet for 2023 and you NEED the income to qualify. In order to use the higher 2023 income you need to provide proof of refund or payment processing that matches the refund or payment provided on the tax return. In addition, the 2023 returns must be signed.
If you do not have the refund or payment verified then you must provide the previous returns required per an approval and transcripts and the most conservative income will be used which is likely not going to help your situation. If the 2023 returns are lower with provided returns then we will include the 2023 in income calculation and you do not need refund or payment proof.
Curious when returns will be back here is a link to the IRS transcript availability.
