UUGGHH! W2 buyers denied loans due to business losses

[Patricia Joseph]

I'm a real estate agent in Georgia. In the last few weeks, I've had 2 potential buyers, both with steady income, denied mortgage financing due to them reporting business losses on their tax returns. After deducting losses from income, lender approved 1 buyer for $90,000. which, with the low inventory, will not buy you a decent property in the suburbs of Atlanta. The other buyer had better credit and lender wouldn't approve a W2-only mortgage. Outcome: lender said both have to wait until next year after tax filing and show no business losses. Is it worth pursuing other lenders and finding alternatives for getting them financing now? Any advice would be helpful!

[Chris Mason]

Originally posted by @Patricia Joseph:

Thanks @Christopher Phillips for the info! This is my first time working with buyers, who also have business income.

Unfortunately, @Upen Patel both buyers have W2 and business losses:(

 These days, if there is no rental income, no self employment being used, and it's a 100% completely vanilla scenario with good credit, the AUS is sometimes just asking for W2s - no tax returns needed.

(As soon as one little thing is not 100% vanilla, the above statement no longer applies. Ergo we're still asking for two years of tax returns, because most people are not 100% vanilla, no matter what they say when you meet with them or talk with them on the phone. Also, as always, overlays.)

(A coworker actually had one where the AUS wasn't calling for an appraisal... but that's another story.)