FHA VOE and P&L Loans CA Rates

Hi, I am Isabella with RateZen Mortgage. In the California mortgage market, you will often hear realtors and buyers talk about VOE-Only loans and P and L loans, sometimes lumping them together with FHA loans. When a lender does not understand the exact line between HUD Handbook 4000.1 FHA guidelines and wholesale Written VOE-Only and P and L Only programs, deals fall apart in escrow. Today I am breaking down both tracks at RateZen Mortgage so you can get pre-approved the right way on Day 1. Let us start with Track 1: official FHA loans under HUD Handbook 4000.1. For FHA Written VOE Alternative Documentation, if you are a W-2 wage earner with two years of employment history, FHA allows an Alternative Documentation method where instead of providing prior-year paper W-2 forms, the lender obtains a completed Written Verification of Employment directly from your employer covering the past two years, paired with your current 30-day pay stubs, bank statements showing payroll deposits, and IRS transcript verification. For FHA Self-Employed P and L Rules, self-employed borrowers applying for an FHA loan at 3.5 percent minimum down payment provide two years of personal and business tax returns plus a year-to-date Profit and Loss statement to prove business income has remained stable or grown. Now, what if your tax returns or pay stubs do not reflect what your employer currently pays you, or what your business actually nets? That is where Track 2 comes in. Under our Wholesale Written VOE-Only program, if you have worked for the same employer for at least 24 months, your employer completes a standard Form 1005 Written Verification of Employment stating your position and current gross earnings, and we do not require personal tax returns, W-2s, or pay stubs. And under our Wholesale P and L Only program, if you are self-employed for 2 or more years, we qualify you off a 12- or 24-month CPA, EA, or CTEC-prepared Profit and Loss statement without personal or business tax returns. Whether you belong in an FHA loan at 3.5 percent down or a Wholesale WVOE-Only or P and L Only loan, we review your exact employer verification or P and L before you start shopping for a home. Want to know which track gives you the strongest approval and lowest upfront cash requirement? Click the button below to schedule a 15-minute call with Isaac Grajeda at RateZen Mortgage. RateZen Mortgage, a division of RateZen Mortgage, California DRE number 01948605, NMLS number 2089797. Call 424-RATE-ZEN, (424) 728-3936. Equal Housing Opportunity.

Quick reel transcript

Hi, I am Isabella with RateZen Mortgage. Confused about the difference between FHA Written VOE guidelines and true No-Tax-Return VOE-Only or P and L Only loans? People ask us every week about FHA VOE-Only and FHA P and L loan programs. Let us clear up the confusion so you know exactly which option fits your situation. There are two tracks we use at RateZen Mortgage when standard paper W-2s or tax returns get in the way. Track One is HUD's official FHA Alternative Documentation: if you are a W-2 employee missing prior paper W-2s, FHA allows a Written Verification of Employment from your employer paired with current pay stubs and bank deposits. And if you are self-employed on an FHA loan, we pair your year-to-date Profit and Loss statement with your tax returns to show current-year stability. Track Two is our Wholesale Written VOE-Only and P and L Only Alternative program: if you are a W-2 earner with two years at the same employer earning tips, commission, bonus, or hourly pay, or self-employed and cannot qualify with tax returns at all, we can qualify you using ONLY a 24-month Written VOE from your employer or a CPA P and L, with zero tax returns and zero W-2s. Not sure which track fits your income? Click the link below to book a quick call with Isaac Grajeda at RateZen Mortgage. RateZen Mortgage, a division of RateZen Mortgage, California DRE number 01948605, NMLS number 2089797. Call 424-RATE-ZEN, (424) 728-3936. Equal Housing Opportunity.