Verification of Employment Loan
Purchase without tax returns, W2’s or paystubs, and with 3.5% down payment.
Verification of Employment (VOE)
The Verification of Employment loan option uses the client’s employment history as the primary criteria for a home purchase. The client’s Tax returns, W2s, and Paystubs are not required.
What Type of Company Do I Have to Work For?
- The employer can be from a variety of industries, i.e. mechanic, nail salon, hair salon, barber, restaurant, call center, doctor’s office, etc.
- The employer does not have to have a large staff.
- The employer must have an internet presence with current information from 3rd party sites such as a google page, Manta.com, and yellowpages.com.
Requirements
The client must be a W2 employee for at least two years at the same employer. Minimum Fico of 620 and a down payment of 3.5% of the purchase price is needed. A verification of employment will be conducted for the employee and will include income verification directly from the employer. Primary Home Only. 100% Gift funds allowed for down payment, closing cost, or reserves.
The client’s loan amount cannot exceed the predetermined FHA County Loan Limits. To review a county loan limit, click the link www.CountyLoanLimit.com to look up your county of interest, and it will provide the maximum county loan limit. If a client qualifies for and chooses a home above the county loan limit, the client will pay for the amount above the county loan limit.
For example:
Tabernacle County has a loan limit of $100,000.
Client wants to buy a home for $105,000.
Client is responsible for downpayment of 3.5%.
- 3.5% of $100,000 is $3500. Client’s maximum financing is 96,500.
- $3500 down payment + $5000 above county limit = 8,500 total down payment.