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Understanding WVOE Mortgage Loans: Everything You Need To Know

Updated: Jan 24

Understanding WVOE Mortgage Loans: Everything You Need To Know

Navigating the maze of mortgage options can seem daunting. This is particularly true when you're self-employed and typical income verification rules don't neatly apply to you. It's like trying to assemble a puzzle with no corner pieces, right? We hear you! That’s why we want to help demystify programs like A&D Mortgage's Written Verification of Employment (WVOE) Mortgage Loans.

Our goal in this article is to guide you through all aspects of WVOE mortgages—defining what they are, explaining their importance for self-employed individuals, and illustrating how approval works.

So get ready; we’re about to embark on an insightful journey down the less-charted path towards homeownership!

Key Takeaways

WVOE Mortgage Loans are a great option for self-employed individuals who struggle with traditional income verification methods.

Written Verification of Employment (WVOE) is crucial for mortgage loan approval, as it confirms the borrower's income and stability.

✅ Different types of employment verification methods exist, including written verification, verbal confirmation, pay stubs, tax returns, 1099 forms, and bank statements.

Non-QM mortgages provide an alternative option for borrowers who don't qualify for conventional loans due to factors like self-employment or unique financial situations.

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What is Written Verification of Employment (WVOE) and Why is it Important?

 What is Written Verification of Employment (WVOE) and Why is it Important?

Written Verification of Employment (WVOE) is a crucial requirement for mortgage loans as it verifies the borrower's income and stability. This documentation plays a vital role in determining the borrower's ability to repay the loan and provides assurance to lenders.

Different types of verification methods exist, ensuring that lenders have accurate information about an applicant's employment status and compensation structure.

Fannie Mae VOE Form - 1005

Fannie Mae VOE Form - 1005

WVOE as a requirement for mortgage loans

Mortgage lenders use the Written Verification of Employment (WVOE) to confirm income stability, verifying specific details about an applicant's work history. This process enables lenders to underwrite your financial credentials confidently.

The WVOE program requires a minimum FICO credit score of 600 and allows for a maximum Combined Loan-to-Value ratio (CLTV) of up to 80%. Crucial in this procedure is the completion of FNMA Form 1005, which outlines two years' worth of employment with the same company.

Interestingly, tax returns are not required in this mortgage loan approval process. Instead, it places emphasis on real-time income verification through WVOE forms sent directly to employers for validation.

Verification of income and stability

Lenders often assess your income and stability to determine how capable you are of making timely mortgage payments. Written Verification of Employment, also known as WVOE, plays a crucial role in this process.

It helps us authenticate the borrower's employment status and salary details provided on the loan application.

The WVOE form provides lenders with specific information about an applicant's work history including dates of hire, compensation structure, year-to-date earnings, potential bonus or commission details.

Moreover, cash-out options are available for the WVOE program which can be advantageous in certain circumstances. Keeping borrowers' financial security in mind, we ensure that the maximum Debt-to-Income (DTI) ratio allowed for our WVOE program is 55%.

Additionally, with this mortgage approval process your tax returns aren't needed sparing self-employed individuals from submitting potentially complicated paperwork.

Different types of verification of employment

Lenders use various methods to verify a borrower's employment and income status. Here are some common types of verification:

🎯 Written Verification of Employment (WVOE): The lender sends a form 1005 to your employer, who fills it out with details about your income, hire date, and employment status.

🎯 Verbal Verification: The lender directly contacts the HR department or another authorized person in your company to confirm your employment.

🎯 Pay Stub Verification: You provide recent pay stubs as proof of income and ongoing employment.

🎯 Tax Return Verification: Lenders may ask for tax returns or W-2 forms from previous years to confirm consistent income levels.

🎯 1099 Income Program: For self-employed borrowers, lenders can use the actual wages from a borrower's 1099 form as qualifying income under this program.

🎯 Bank Statements: Some lenders will accept bank statements that show regular deposits matching declared income sources.

Understanding Non-QM Mortgages

Understanding Non-QM Mortgages

Non-QM mortgages, also known as non-qualified mortgages, are a type of loan program that doesn't meet the traditional criteria set by Fannie Mae and Freddie Mac. These loans provide an alternative option for borrowers who may not qualify for conventional mortgages due to factors such as self-employment or unique financial situations.

With non-QM mortgages, lenders consider other aspects of a borrower's financial profile, such as bank statements and credit history, rather than just relying on standard income verification methods like tax returns or W-2s.

This flexibility allows self-employed individuals and those with irregular income sources to have a better chance at securing their dream home loan. Keep in mind that while non-QM mortgages offer more options for qualifying, they generally come with slightly higher interest rates compared to conventional loans.

It's important to weigh the benefits and considerations before deciding if a non-QM mortgage is the right fit for you.

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How to Get Approved for a WVOE Mortgage

 How to Get Approved for a WVOE Mortgage

To get approved for a WVOE mortgage, you need to take certain steps. We'll guide you through the process and even provide a case study on how someone got approved despite their unemployment situation.

Don't miss out on this valuable information - read more now!

Who should consider a WVOE mortgage?

If you are a self-employed borrower looking for a mortgage, then you should definitely consider a WVOE mortgage. This program is designed specifically for individuals like you who have difficulty verifying their income through traditional means.

With the WVOE program, you can qualify for a home loan without having to provide tax returns or pay stubs. Instead, your lender will use written verification of employment from your employer to confirm your income and stability.

So if you're tired of struggling to prove your earnings and want an alternative option that takes into account the specifics of your employment, a WVOE mortgage may be just what you need.

Steps to getting approved

To get approved for a WVOE mortgage, follow these steps:

Complete the loan application: Fill out the necessary forms and provide all required documentation, such as bank statements and tax returns.

Gather employment verification documents: Obtain written verification of your employment from your employer using the WVOE form. This form confirms specific details about your employment, such as dates of hire, compensation structure, and current employment status.

Calculate qualifying income: Work with your lender to calculate your qualifying income based on the information provided in the WVOE form. This may include salary, bonus, commissions, and other sources of income.

Submit all documentation: Ensure you have submitted all required documentation to your lender, including the completed loan application and supporting financial documents.

Underwriting process: The lender will review your application and documentation to assess your creditworthiness and ability to repay the loan. They may request additional information or clarification during this process.

Loan approval: If you meet all the necessary requirements and are deemed eligible for a WVOE mortgage loan, you will receive loan approval from the lender.

Case study: Getting approved despite unemployment

We recently had a client who was worried about getting approved for a mortgage because they were currently unemployed. However, with the WVOE program, they were still able to qualify for a loan.

This program doesn't require borrowers to be currently employed and instead focuses on verifying income history and stability. Even though our client didn't have a traditional salary, they were able to use the 1099 Income Program to qualify for their WVOE mortgage loan.

Plus, since the program doesn't require tax returns, our client was able to get approved quickly without having to submit additional documentation. So if you're self-employed or currently unemployed but still want to buy your dream home, don't worry – there are options available for you through the WVOE program!

Applying the "Five Cs" for loan approval

To ensure loan approval for the WVOE mortgage program, it is important to focus on the "Five Cs" criteria: credit history, collateral, capacity to repay, capital reserves, and conditions.

Your credit history plays a major role in determining your eligibility for a mortgage loan. It's essential to maintain a good credit score and have a solid repayment track record. Collateral refers to the value of the property you are purchasing or using as security for your loan.

Lenders will assess this value to determine their risk level. Capacity to repay depends on your income and debt-to-income ratio (DTI). Lenders want assurance that you can comfortably make monthly payments.

Capital reserves show that you have enough funds available for down payment, closing costs, and emergency expenses. Lastly, lenders consider external conditions such as economic factors when evaluating your application.

Exploring Non-Warrantable Condo Mortgages

Exploring Non-Warrantable Condo Mortgages

Non-warrantable condo mortgages are a viable option for experienced self-employed mortgage borrowers who are looking to finance a condominium unit that doesn't meet the typical criteria set by Fannie Mae and Freddie Mac.

These non-warrantable condos may not conform to certain guidelines due to factors like high investor concentration or pending litigation. However, with the help of specialized lenders like A&D Mortgage, it's still possible to secure financing for these unique properties.

Non-warrantable condo mortgages offer an alternative solution for borrowers who want to purchase their dream home in a condominium complex that may not qualify under conventional loan programs.

With flexible lending options and expertise in this area, A&D Mortgage can provide guidance and support throughout the loan process, ensuring that qualified borrowers can explore all available avenues for homeownership.

Benefits and Considerations of WVOE Mortgage Loans

 Benefits and Considerations of WVOE Mortgage Loans

When it comes to WVOE mortgage loans, there are several benefits and considerations to take into account. From avoiding the need for tax returns and pay stubs to qualifying for higher loan amounts, these loans offer flexibility and convenience.

To learn more about the advantages of WVOE mortgage loans, as well as important factors to consider, continue reading.

No need for tax returns, pay stubs, or W-2s

With WVOE mortgage loans, you can breathe a sigh of relief knowing that tax returns, pay stubs, and W-2s are not required. This alternative lending program streamlines the application process for experienced self-employed borrowers.

By eliminating these documentation requirements, lenders can focus on verifying your employment and income through other means. It's a hassle-free way to qualify for a mortgage and get one step closer to purchasing your dream home.

Qualification amounts

To qualify for a WVOE mortgage, there are certain amounts you need to consider. First, the minimum FICO credit score required is 599. This means that your credit score must meet this threshold to be eligible for the program.

Additionally, the maximum Combined Loan-to-Value (CLTV) ratio allowed is 85%. This ratio represents the percentage of your home's value that can be financed through the mortgage loan.

Furthermore, the maximum loan amount for a WVOE mortgage can go up to $4 million. Lastly, it's important to note that the maximum Debt-to-Income (DTI) ratio allowed is 55%. This ratio compares your monthly debt payments to your monthly income and helps lenders determine if you can afford the mortgage payments.

Eligible properties

The type of property you want to buy plays a crucial role in determining if it is eligible for a WVOE mortgage. In general, single-family homes and condominiums are eligible properties for this type of loan.

However, there may be certain restrictions or guidelines that lenders have regarding the eligibility criteria. It's important to check with your lender to confirm if the property you have in mind qualifies for a WVOE mortgage.

By doing so, you can ensure that you're focusing your efforts on properties that align with the requirements of this specific loan program.

Specifics of Condo Loans in Florida

Specifics of Condo Loans in Florida

The WVOE program offered by A&D Mortgage can be used for condo loans in Florida. If you're looking to buy a condo in the sunshine state, this program could be a great option for you.

With a minimum FICO credit score requirement of 599, it's accessible to a wide range of borrowers. Plus, with a maximum Combined Loan-to-Value (CLTV) ratio of 85%, you can finance up to 85% of the property's value.

To qualify for the WVOE program in Florida, you'll need to provide a Written Verification of Employment (WVOE) form that confirms your income and employment details. This is typically done using the FNMA Form 1005, which shows your two-year employment history with the same employer.

And here's some good news - tax returns aren't required! So if you're self-employed or have other sources of income, this program may work well for you.

With loan amounts going up to $4 million, there's plenty of flexibility when it comes to financing your dream condo in Florida. Whether it's Miami Beach or Destin, the WVOE program can help make homeownership a reality for experienced self-employed mortgage borrowers like yourself.



In conclusion, understanding WVOE mortgage loans is crucial for experienced self-employed borrowers. By providing written verification of employment, these loans offer an alternative to traditional mortgages and allow borrowers to qualify based on their actual income.

With no need for tax returns or pay stubs, the WVOE program simplifies the application process and offers flexibility in loan amounts and debt-to-income ratios. Consider exploring this option if you're looking for a mortgage that takes into account your specific employment situation.

Key Terms and Concepts

When navigating the world of WVOE mortgage loans, it's essential to understand some key terms and concepts. A mortgage broker is a professional who assists borrowers in finding suitable lenders. This broker will often require specific details about their employment to ensure the applicant's credibility. The process involves communication between the lender and your employer to verify employment.

This verification is especially crucial if the applicant is a wage earner, as it provides the lender with confidence in the applicant's ability to repay the loan. Familiarizing oneself with these terms can greatly simplify the mortgage application process.


What are WVOE loans?

WVOE (wage verification of employment) loans are a type of residential mortgage where the lender must verify specific details about your employment and income.

How does one start the process for a new home loan using WVOE?

To get started with a new home loan, you need to get in touch with us so we can guide you through the verification process which involves confirming specifics from previous employers and examining your overtime pay.

Do lenders confer directly with employers during wage verification?

Yes, in order to authenticate specific details about your work history such as P&L statements or overtime hours, there is correspondence between your chosen lender and current or previous employer(s).

Is it possible for everyone to apply for WVOE loans?

Certain eligibility conditions may apply when considering WVOE mortgages so it's best to contact us directly for precise information tailored towards federal housing regulations.

Does applying for a WVOE loan require any detailed employment records?

Absolutely! To verify your income during the application process, providing comprehensive records related to wage earnings will be necessary; these encompass but aren't limited to timesheets, pay slips from past or present occupations among other particulars.

Philip Bennett

Philip Bennett

Philip is the owner and Licensed Mortgage Broker at Bennett Capital Partners, Bus. NMLS # 2046828. He earned his degree in Accounting and Finance from Binghamton University and holds a Master's Degree in Finance from NOVA Southeastern University. With more than 20 years of experience, Philip has been a leader in the mortgage industry. He has personally originated over $2 billion in residential and commercial mortgages.

Learn more about Philip Bennett's background and experience on our Founder's page. Whether you're a first-time homebuyer or a seasoned real estate investor, our team is here to help you achieve your real estate goals. Don't wait any longer, contact us today and let us help you find the right mortgage for your needs.

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