Traditional mortgage qualification often relies on a familiar set of income documents, but not every borrower’s financial profile needs to be evaluated in exactly the same way.
For certain eligible wage earners, a Written Verification of Employment (WVOE) program may provide an alternative method of documenting employment and income.
What Does WVOE Mean?
WVOE stands for Written Verification of Employment.
A WVOE is documentation completed through an acceptable verification process that provides information about a borrower’s employment and earnings.
Certain Non-QM programs may use WVOE documentation as part of an alternative income-verification approach.
How Is a WVOE Loan Different?
Traditional mortgage programs may require combinations of paystubs, W-2s, tax documents, or other income records.
Eligible WVOE programs can provide a different documentation path by evaluating qualifying employment and income through the verification requirements established by the applicable program.
The borrower must still satisfy the program’s underwriting and eligibility requirements.
Who May Benefit From a WVOE Program?
A WVOE program may be worth exploring for eligible borrowers who:
- Receive regular wage or salary income
- Have verifiable employment
- Need an alternative income-documentation method
- Otherwise meet applicable credit, asset, property, and loan requirements
Because WVOE requirements vary by program, eligibility should always be reviewed based on the borrower’s complete scenario.
WVOE Does Not Mean No Income Verification
Alternative documentation should not be confused with eliminating income qualification.
The lender still evaluates the borrower’s ability to repay and verifies information according to the requirements of the selected loan program.
The difference is primarily the method used to document qualifying employment and income.
Explore Alternative Income Solutions
A borrower who does not fit a standard documentation approach may still have financing options.
Pacific Bay Lending Group offers Non-QM solutions with multiple approaches to income documentation for eligible borrowers.
Mortgage professionals can use our Non-QM Scenario Pricer to explore potential solutions for their borrower’s scenario.
Loan programs, guidelines, qualification requirements, rates, terms, and availability are subject to change and may vary based on borrower qualifications and other factors. Not all applicants will qualify. This content is for general informational purposes only and does not constitute a commitment to lend.
