What is the 2 2 2 credit rule?

Answer

The 2 2 2 credit rule is a common lender documentation guideline used to verify a borrower’s income and stability. While details vary, it often means providing at least two years of employment history, two years of tax returns or W 2s, and two recent bank statements. Lenders use this documentation to confirm that income is consistent and that you have the funds needed for down payment and closing costs. Self employed borrowers may provide two years of business and personal returns instead. Meeting this rule does not guarantee approval, but it helps underwriters assess risk and comply with loan program requirements.