Traditional Lending During Covid

[Mark Weinstein]

Hey BP,

I was hoping someone who has good experience as a loan officer can give some advice on my situation.

I'm looking to purchase my first property using Fannie Mae's 97% LTV loan. My concern comes when it comes to verifying income because I don't know if I'll be able to qualify given the current situation.

I’m a realtor but I don’t have 2 years of 1099’s so that income isn’t an option for qualifying but I do have W2’s for the last 2 years for my work as a bartender. 2018 and 2019 W2s are available for income verification but I’ve been furloughed since March due to Covid. Tbh, I plan on staying a realtor FT and not returning to bartend, but I don’t want my W2s to go to waste especially when they can be beneficial in getting traditional financing.

I haven’t been pre-approved so before I begin that process does anyone out there have familiarity with this situation or any advice? IMO I think I should be trying to get pre-approved now while my ‘18 and ‘19 W2s are still in play but at the same time what are they going to say when I can’t show them any paystubs after March of this year? How are traditional lenders dealing with these situations because I’m technically still on the books and employed with the company, we just haven’t returned to sole since March.

Any help/advice is appreciated. Thanks BP!