For self-employed borrowers obtaining a Newport loan, taxes for 2016 no longer need to be filed by June 30, 2017. The 2016 tax transcripts or IRS stamped copies are required to come back to validate 2016 income. 2016 tax extension is not allowed for self-employed borrowers.
For wage earners with no other income, such as rental or self-employed income, a 2016 tax extension is acceptable for the wage earner only. The underwriter will execute full tax returns for 2014, 2015, and 2016. For 2016, we will execute a W2 and it must come back. If the borrower filed for extension in 2016, then results need to come back with no record found.