Overview
It's a good choice for wage earner who can not be qualified with agency loan and do not want to provide varities of income documents.
Program Highlights
7/6 ARM (5/1/5); 5/6 ARM (2/1/5)
1) Foreign national allowed;
2) No Paystub / W2 / tax return / 4506-C;
3) Gift funds allowed;
4) Max. Loan Amount $2M;
5) Max. LTV 70%;
6) Min. FICO 700.
Income Requirements
WVOE:★Written VOE completed by employer.
General Requirements
★Max Front-End/Total Debt-to-Income (DTI) ratio allowed: 36%/41%.
★Qualifying Interest Rate: the greater of start rate or fully-indexed rate.
★No minimum borrower contribution on owner occupied and second homes. (excludes Foreign National).
★For loan amount up to $1,000,000: 1 Full Appraisal &1 Automated Valuation Model are required. | For loan amount 1,000,001 to $2,000,000: 1 Full Appraisal & 1 Field Review are required.
What is WVOE?
Did your lender request updated paystubs again and again due to underwriting conditions?
Did the lender calculate your income and tell you that you are not qualified with the mortgage?
Have you not been able to find your W2s or paystubs?
Salaried borrowers receive a consistent wage or salary from an employer in return for a service rendered and have no ownership or less than 25% ownership interest in the business. Compensation may be based on an hourly, weekly, biweekly, monthly, or semi-monthly basis. If hourly, the number of scheduled hours must be addressed. The income that is verified must be converted into a monthly dollar amount for use on the formal application (FNMA Form 1003). At the discretion of the underwriter, supplementary documentation of income may be requested.
The Benefits of WVOE
The highlight of this program is its simplicity. The only document required to calculate qualified income under this program is the WVOE form. This provides a much more simplified and streamlined process for creditworthy borrowers with demonstrated ability to repay who may have just missed the guidelines with agency programs.
How to calculate the salary?
- Use the base salary (semi-monthly, bi-weekly, or hourly rate as supported by YTD) from WVOE.
Examples:
- Semi-monthly: Semi-monthly amount multiplied by 2 equals monthly income.
- Bi-weekly: Bi-weekly amount multiplied by 26 divided by 12 equals monthly income.
- Teacher paid for 9 months: Monthly amount multiplied by 9 months divided by 12 months equals monthly qualifying income.
Remind the employer to complete the WVOE form, then lender will proceed with the loan fast.
