A good fit if
- You're a W-2 employee with variable pay or large unreimbursed expenses
- Your tax returns understate your take-home income
- Your employer can complete a WVOE form promptly
Probably not if
- You own 25% or more of the business you work for
- Your employer is a family member
- Your W-2s and returns already support the loan (full doc will price better)
How WVOE-Only Loans Work
Your employer completes a written verification of employment listing your position, start date, and earnings, including base pay, overtime, bonus, and commission. The lender qualifies you on that income and verifies your employment directly before closing. No pay stubs, W-2s, or tax returns are used.
Example: a sales manager earns $110,000 base plus $60,000 in commission. They also report a $30,000 loss from a side business on their tax return, which a conventional lender would subtract. On a WVOE-only loan, the employer verifies $170,000 a year, or about $14,167 a month, and that's the qualifying income.
Why Borrowers Choose WVOE
- Tax returns that show losses from a side business or rental, which conventional lenders subtract from income
- Bonus or commission income that's hard to document the conventional way
- Employees of family businesses or small companies where W-2s don't tell the full story
- A simpler documentation package
WVOE Loan Requirements
- Credit: from about 620–660.
- Down payment: usually 20–25% on a purchase (75–80% LTV).
- Cash-out: usually up to 70–75% LTV.
- Employment: usually 2 years with the same employer or in the same field.
- Debt-to-income: up to about 50%, and 55% at some lenders.
- Employer: can't be owned by you or a relative at most lenders; they'll verify by phone.
- Property: primary, second home, and investment.
Read the WVOE-only loan guide for details.
How to Qualify for a WVOE Loan
- Confirm your HR or payroll department will complete Form 1005 or the lender's WVOE form.
- Check that your employer can verify base, overtime, bonus, and commission separately.
- Make sure you've been in the role or field for about 2 years.
- Gather statements for your down payment and reserves.
- Send me your scenario, and I'll check WVOE against a full-doc or bank statement option.
Documents You'll Need
- A completed written verification of employment, sent directly from your employer to the lender
- Your employer's contact information for the verbal verification
- Two months of statements for your down payment and reserves
- Photo ID and credit authorization
- Purchase contract or current mortgage statement
WVOE vs. Full-Doc Conventional
| WVOE-only | Conventional | |
|---|---|---|
| Income docs | Employer's WVOE | Pay stubs, W-2s, sometimes tax returns |
| Typical down payment | 20–25% | As little as 3–5% on a primary home |
| Pricing | Usually somewhat higher | Usually lower |
| Best for | Income that doesn't show on tax returns | Straightforward W-2 income |
WVOE-Only Loan FAQ
Who fills out the WVOE?
Your employer's HR or payroll department. The lender usually sends the form directly to them.
Do I need tax returns for a WVOE loan?
No. The employer's verification replaces pay stubs, W-2s, and tax returns for income.
Can bonus and commission income count?
Yes, if the employer verifies it and it's likely to continue.
Can I use WVOE if I work for a family business?
Usually not, because most lenders don't allow a WVOE completed by a relative or a company you own.
Can I use WVOE if I'm self-employed?
No. Self-employed borrowers usually use bank statement, P&L, or 1099 programs instead.
Available for properties in California. Guidelines shown are typical ranges from published Non-QM lender guidelines and are not a commitment to lend. Your terms depend on credit, employment, property, and the lender's current guidelines, and can change without notice.