VOD (Verification of Deposits)
Bank confirmation of account balances, used to verify down payment and reserve funds. Lenders may request VODs directly from the financial institution rather than relying solely on self-provided bank statements, particularly for larger asset amounts.
How does this affect your loan? Estimate self-employed qualifying income with the DTI calculator, or read the self-employed mortgage guide.
Related terms
- Tax transcripts (IRS 4506-C) — The IRS form lenders use to request your tax transcripts directly from the IRS, verifying that the returns you…
- P&L statement (Profit and Loss) — A business income statement showing revenue minus expenses over a period. For mortgage purposes, a P&L must be…
- Business bank statements — 12–24 months of statements from a business checking or savings account, used as the primary income document fo…
- Expense factor / expense ratio — The percentage of bank deposits a lender treats as business expenses when calculating qualifying income on a b…
- Letter of explanation (LOE) — A written statement from the borrower explaining an unusual item in the application: a large deposit, a credit…
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Sources
Educational definition only — not financial, legal, or tax advice. Programs and limits change; verify current terms with a licensed professional.