What is a Verification of Employment Only Loan?

A Verification of Employment (VOE) Only loan is a type of mortgage that relies solely on the borrower's employment status and income as verified by their employer, rather than requiring extensive financial documentation such as tax returns or bank statements. This type of loan is designed to simplify the qualification process for borrowers who have a steady job and income but may not have traditional documentation to support their financial standing.

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Benefits of a Verification of Employment Only Loan

Verification of Employment Only loans offer several significant benefits:

  • Simplified Documentation: Reduces the need for extensive financial documentation, making the application process quicker and more straightforward.
  • Faster Approval: Streamlined verification process can lead to faster loan approvals and closings.
  • Accessibility: Provides an option for borrowers who may not have traditional documentation, such as self-employed individuals or those with irregular income.
  • Convenience: Focuses on employment and income stability, which can be easier to verify and provide.

 

Who Qualifies for a Verification of Employment Only Loan?

To qualify for a Verification of Employment Only loan, borrowers typically need to meet the following criteria:

  • Steady Employment: Must have stable and verifiable employment, usually with the same employer for a significant period, often at least two years.
  • Consistent Income: Demonstrated consistent income that meets the lender’s requirements.
  • Good Credit History: A good credit score is generally required, although the exact minimum score can vary by lender.
  • Employment Verification: Willingness to have their employment and income verified directly with their employer, income will be averaged over a 2 year period.

 

Requirements for a Verification of Employment Only Loan

When applying for a Verification of Employment Only loan:

  • Employment Verification: A completed verification of employment form or letter from the employer confirming employment status, length of employment, and income.
  • Income Verification: Employer-provided documentation of income called a written verification of employment.
  • Credit Report: A credit report to assess creditworthiness and ensure a good credit history.
  • Personal Identification: Valid photo ID to verify identity.
  • Employer Cooperation: Employer must be willing to provide the necessary verification directly to the lender.

 

A Verification of Employment Only loan is an excellent option for borrowers with stable employment and income who seek a simplified and expedited mortgage application process. By focusing on employment verification, this type of loan provides a streamlined path to homeownership for those who may not have traditional financial documentation.

For more information or to start your application, contact MORTGAGEinc today, info@mortgage-inc.com!