4506-T IRS Tax Transcripts Conventional Loans
The IRS will not issue tax return transcripts. As a short-term alternative solution, we are temporarily ceasing the tax transcript requirement on conventional loans. However, we will require that the form 4506-T still be executed at closing by the borrower(s) and contained in the file for future use. Use of the
attached specific 4506-T
form in the name of Alabama Housing Finance Authority is required. We will re-verify income with the IRS on all conventional files delivered without tax transcripts due to the shutdown.
For government loans tax transcripts are not required unless required by the Lender’s Underwriter for qualifying income documentation.
Verification of Employment/Verbal VOE for Government Employees
- Conventional Loans: If you are unable to obtain a verbal verification during the shutdown, a Verbal VOE can be obtained after closing; however, it must be obtained prior to loan delivery to be eligible for purchase. With respect to the requirements for a written or verbal VOE, verification obtained from a third-party service provider, such as the work number is acceptable. For borrowers in the military, a Leave and Earnings statement dated within 30 calendar days (or 31 days for longer months) prior to Note date in lieu of verbal VOE.
- FHA: If you have a VOE you do not need to have a verbal VOE. If you have used alternative W2s and pay stubs, you would still need to have a verbal certification. An electronic means such as the work number would be acceptable.
- VA: VA will allow the work number or other employment verification service.
USDA Rural Housing
USDA’s Rural Housing Service has ceased all but essential functions. We are unable to purchase any USDA/Rural Housing loans without a guarantee and/or Conditional Commitment.
FEMA Flood Insurance
The ability to obtain new flood insurance policies may be impacted. An active policy with a declarations page will be required to purchase any loan with a property in a flood hazard area.
This guidance is automatically rescinded and standard guidelines reinstated once the government resumes operations.