Written VOE Mortgage Loans

How written employment verification works

A two-year history with the same employer is required. Human Resources, Payroll or an officer of the company completes FNMA Form 1005. The two most recent personal bank statements must show employer deposits supporting at least 65% of the gross wage or salary reflected on the WVOE. Employment by family members or related individuals is ineligible.

WVOE is a wage and salary documentation method. A business owner relying on company revenue should compare bank statement, 1099 or P&L documentation instead.

The WVOE matrix is separate

Written VOE uses the Prime Time alternative-documentation column alongside P&L only and asset utilization. The strongest eligible tiers allow up to 80% purchase LTV, rather than the 90% headline for selected standard-documentation or bank-statement files. Higher loan balances and refinance transactions have lower limits.

The matrix begins at 680 credit for this documentation path. Primary residences, second homes and investment properties may be considered, subject to licensing, occupancy and property restrictions.

For a first-time homebuyer using WVOE, maximum LTV is 70% and gift funds are not allowed. For the borrower using WVOE, no other active employment income may be used, although eligible passive income such as rent can be considered. The business must be independently verified.

Credit, reserves and the property still matter

The WVOE path allows no more than one 30-day housing late payment in the last 12 months and requires at least 36 months since a covered credit event. Income documentation does not waive credit, appraisal or asset review.

Reserve requirements depend on LTV and loan amount. Prime Time state overlays apply in Connecticut, Florida, Illinois, New Jersey and New York. An appraised declining market may also reduce the available leverage.

Prepare an employer-verification file

Start with a consistent picture of your employer, pay and account activity. Disclose changes in job, pay structure or compensation before the verification is completed.

• Employer contact information and FNMA Form 1005.
• Two recent personal bank statements with payroll deposits.
• Employment history and any documentation requested for variable earnings.
• Property address, purchase contract or current mortgage statement, and funds for closing and reserves.