What VA Buyers Should Know About Verification of Rent (VOR)

Congratulations! You’ve made the exciting decision to transition from renting to owning a home. As a veteran, you have access to valuable benefits like the VA Loan Program, which can help you get a mortgage with no down payment and lower interest rates. However, there are some additional steps involved in the VA loan process, like verification of rent (VOR).

What is Verification of Rent (VOR)?

A VOR is a process where your mortgage lender verifies your rental payment history for the past 12 or 24 months. This helps them assess your financial stability and ability to handle a monthly mortgage payment.

Why is VOR required for VA loans?

VOR helps ensure that veterans can comfortably manage their new mortgage payments. Since renting typically involves lower monthly costs compared to owning a home, lenders want to confirm you consistently made timely payments on a similar or higher amount before taking on a larger financial obligation.

When is VOR required?

VOR is usually required for manual underwrites, which happen when your loan application doesn’t meet the criteria for automated approval. This could be due to factors like limited credit history, recent changes in employment, or self-employment.

How can I prepare for VOR?

Here are some tips to make the VOR process smooth:

  • Gather your documentation: This includes bank statements, canceled checks, or receipts showing your rent payments. If you used online payments, gather screenshots or printouts from your online banking portal.
  • Be upfront with your lender: If you have any late payments or inconsistencies in your rental history, explain them to your lender upfront. Honesty and transparency can help build trust and potentially mitigate potential issues.
  • Respond promptly to requests: Your lender may contact your landlord for verification. Ensure your landlord is aware of the possibility and is prepared to respond to their inquiries promptly.

Additional Resources:

Remember:

VOR is a standard part of the VA loan process and shouldn’t be a cause for concern. By being prepared and proactive, you can ensure a smooth and successful home buying experience.

Ready to make your dream of homeownership a reality? Contact Ready Front Real Estate today to connect with a VA loan specialist who can guide you through the entire process, including VOR. We understand the unique needs of veterans and are here to help you every step of the way.

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1 month ago

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