What is a Verification of Employment (VOE) Only Mortgage?
The Verification of Employment (VOE) Only is a mortgage loan option that uses your VOE only to verify your ability to make the mortgage payments.
Min 660 FICO – Up to 80% LTV
• No tradeline requirement w/ 3 credit scores
• No tax return, W2, or paystubs
• Non-Perm up to 80% LTV
• Unlimited Cash in Hand
• Cash-out used for reserves
• SFR, Condotels, Condos, 2-4
• Loan amounts up to $3m
• 2 months bank statements required
Why would someone need a VOE-only Mortgage?
A “VOE only” mortgage, which stands for “Verification of Employment only” mortgage, is needed when a borrower wants to qualify for a loan based solely on their employment status, without providing additional income documentation like paystubs or tax returns, typically because their income source is non-traditional or difficult to verify through standard means, like self-employment or commission-based work;
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Less stringent income verification:Unlike a standard Florida mortgage, a VOE-only mortgage loan relies primarily on contacting the borrower’s employer to confirm their employment and income via VOE, without requiring extensive documentation requirements like w2, paystubs, tax returns or paystubs.
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Suitable for non-traditional income:This type of mortgage can be helpful for individuals with income sources that are difficult to verify with traditional methods, such as self-employed individuals, freelancers, or those with significant commission-based income.
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Higher risk for lenders:Since lenders have less concrete proof of income with a VOE only mortgage, they may consider the borrower to be a higher risk and could charge higher interest rates or require a larger down payment.
Important considerations:
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Credit score still matters:Even with a VOE-only mortgage, a good credit score is still crucial for approval.
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Limited availability:Not all lenders offer VOE only mortgages, and those that do may have strict eligibility requirements.
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Potential for stricter underwriting:Lenders may scrutinize other aspects of the borrower’s financial situation more closely when relying solely on employment verification.
VOE Florida Mortgage Lenders Disclosures Requirements
- Credit Report – Must be merged into the LOS.
- Borrowers’ ID (Passport or Driver License).
- Purchase Contract (if applicable)
- Complete Loan Application – Including Income & Employment.
- Submission Form Completed.
- Required to Underwrite (in addition to above)
