Overview
A “verification of employment mortgage loan” refers to a type of mortgage where the lender verifies the borrower’s employment status and income directly with the borrower’s employer as part of the loan application process. No pay
stubs or tax returns required by the lender. This loan follows the FHA guidelines.
Down Payment
Borrowers may be able to qualify for a verification of
employment loan with a down payment as low as 3.5% of the home's purchase
price.
Income Verification
Income is verified by pulling a verification of employment
(VOE) through Equifax. The borrower needs to be employed with the employer
for a minimum of 2 years.
Credit Score
Borrowers typically need a good credit score to qualify for a
verification of employment mortgage loan– minimum fico required is 680.
Mortgage Insurance
This loan follows the FHA guidelines for mortgage insurance.
Loan Limits
The verification of employment loans follows the FHA guidelines –
they vary by location and are set annually by HUD. These limits are based on the
median home prices in each area and are meant to ensure that FHA loans are
accessible to borrowers in different housing markets.
