A WVOE-only loan qualifies W-2 employees using a written verification of employment, a standard form your employer completes with your job title, start date, and earnings. It replaces pay stubs, W-2s, and tax returns, which helps when your tax paperwork tells a messier story than your paycheck.
How a WVOE-Only Loan Works
Your employer fills out a written verification of employment, usually Fannie Mae Form 1005 or the lender's version, listing your base pay, overtime, bonus, and commissions for the current and past years. The lender confirms the employer is real and reachable, and verifies your employment by phone before closing.
Who It's For
- Employees whose tax returns show large unreimbursed expenses
- People with variable pay, such as bonuses or commissions
- Employees who changed jobs or employers recently but stayed in the same field
- Anyone who wants a simpler documentation package
It generally isn't available if you own 25% or more of the company you work for, or if the employer is a family member. Those borrowers usually look at bank statement or P&L loans instead.
WVOE-Only Loan Requirements
| Guideline | Typical | Strongest files, at some lenders |
|---|---|---|
| Credit score | 640–660 | From about 620 |
| Max LTV, purchase | 75–80% | Up to 80% |
| Max LTV, cash-out | 70% | Up to 75% |
| Employment history | 2 years, same employer or field | Same |
| Debt-to-income | Up to 50% | Up to 55% |
| Loan size | Up to $2–3 million | Up to $3 million or more |
First-time homebuyers and cash-out refinances often face lower maximum LTVs on WVOE programs.
WVOE vs. Full Documentation
If your W-2s and tax returns support the loan you want, a full-documentation loan, conventional or Non-QM, usually prices better. A WVOE-only loan makes sense when the standard paperwork gets in the way.
WVOE FAQ
Do I need pay stubs or W-2s for a WVOE-only loan?
Usually not. The completed WVOE from your employer replaces them, though the lender still verifies your employment directly.
Can self-employed borrowers use WVOE?
Generally no. If you own a significant share of the business, look at bank statement, P&L, or 1099 programs.
Is WVOE allowed on investment properties?
At many lenders, yes, along with primary homes and second homes.
In the financial industry since 2015. Licensed loan officer in Los Angeles, California. NMLS #1493724, with UTM Financial, LLC (NMLS #2591548). More about Ivan
This article is general education, not financial, tax, or legal advice. Loan guidelines vary by lender and change often. Not a commitment to lend.