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Remote work has many benefits, including greater flexibility and higher employee performance. Unless you work in a hybrid environment that requires you to come into the office regularly, a fully remote job lets you live in a location that suits your lifestyle, even if it’s far away from company headquarters. In fact, many businesses advertise “work from anywhere” as a primary benefit on their job listings.
Remote work expands your home-buying opportunities, allowing you to consider areas that might have been out of reach before. Maybe the housing options near your company’s headquarters are too expensive, but with remote work, you can buy a home in a more affordable area and still get the job done.
If you're a remote worker looking to buy a home in a location within a noticeable distance from your employer, you'll likely need to provide your mortgage lender with one extra document to get approved: a remote work letter.
What Is an Employment Verification Letter for Remote Workers?
No matter your work arrangement, your lender will need to verify your employment during the mortgage application process. While this is sometimes done over the phone or through email, a lender may request an employment verification letter. This letter must come from your employer, typically the human resources (HR) department, and include information about your job position, salary, length of employment and more.
If you work in a different area than your employer, the employment verification letter must also state that you are authorized to work remotely.
Is It Necessary for Your Mortgage Loan Application?
Yes. Your lender will likely require a remote work letter if you work remotely. This letter verifies your employment and income for the lender, confirming that your remote work arrangement is stable and not temporary.
Why Lenders Need a Remote Work Letter
A remote work letter provides your underwriter (the reviewer who decides whether the loan can be approved) with important information that affirms your employment and income stability. It gives them confidence that you’ll be able to make your mortgage payments.
Requesting a Remote Work Letter from Your Employer
To request a remote work verification letter, contact your HR department. If your employer does not have a formal HR department, your direct supervisor or office administrator may be able to provide the letter.
As soon as you apply for a mortgage, inform your employer that you’ll need this letter. This way, you’ll be ready when the underwriter requests it and you can keep the loan process moving.
Remote Work Letter Template
Here’s an example of what a remote work verification letter might look like:
11/15/2024
To Whom It May Concern:
Re: Jane Doe
We confirm the following details regarding Jane Doe’s employment with [company name]:
- Her gross salary is $50,000/year
- She is employed on a permanent, full-time basis
- She started working with us on 09/04/2019
- She is not on probation
Her position is fully remote and does not require her to live in the same state as our company. If you require any additional information, please do not hesitate to contact our Human Resources department at [insert phone number].
Regards,
[Employer’s Signature]
John Smith
Human Resources Manager
[company name]
What Lenders Look for in a Remote Work Letter
Ask your employer to include the following in your letter:
- Company’s official letterhead to add credibility
- Current date
- Employer’s contact details
- Your job title
- Your salary or current pay rate
- Your type of employment, such as full-time or part-time
- Start date and length of employment
- Confirmation that you’re authorized to work and live in different areas and that it is not a temporary arrangement. The letter should specifically state that you are permitted to maintain remote wage earner status for at least the next three years.
- Employer’s signature
How This Can Impact Your Mortgage Application
A remote work letter helps your lender verify your employment status, confirm your permanent remote work arrangement and assess your income — all essential factors for mortgage approval. This documentation allows lenders to evaluate your stability and reliability as a borrower.
Frequently Asked Questions
Can I Buy a House in a Different State if I Work Remotely?
Yes, in terms of qualifying for a mortgage, you can still buy a house in a different state from where your company is located. Some employers won’t approve remote work that crosses state lines because they want remote work that is still technically considered local employment. Or an employer may require a hybrid version of both on-site hours and remote work. A remote work letter confirms your employer doesn’t hold you to either of those requirements. Employment and income are two of the most important qualifications, so a remote work letter goes a long way in reassuring lenders.
What if I’m Self-employed?
Self-employment rarely conflicts with mortgage qualifications, including remote work. As long as you can provide official documentation that addresses the stability of your income, location, length of self-employment and the nature of the business, there shouldn’t be any hiccups.
Do All Lenders Require a Remote Work Letter?
Lenders must verify employment status and income for all borrowers, including remote workers. It’s a standard part of the mortgage application process. While this may include calling the employer or reviewing pay stubs and tax returns, a formal remote work letter is typically required for homebuyers who work remotely. This helps validate that the borrower will be able to maintain their income while living in a different area than their employer.
Ready to Move? Pennymac Is Here to Help
If you’re a remote employee thinking of purchasing a home, Pennymac can help. Our Loan Experts can answer your questions, help you explore your loan options, and get you started on your new mortgage Pre-Approval. Contact Pennymac today.
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Meet Our Contributing Editors
Bradley Thompson and Afton Lambert are Contributing Editors for Pennymac’s consumer content and are exemplary leaders within the mortgage industry space. Both experts take pride in helping our customers achieve and sustain their aspirations of home.
For over 13 years, Bradley has achieved success as a high performer in various leadership roles including consumer direct sales and mortgage fulfillment positions.
With over 10 years of mortgage experience, Afton started her career as a top performing Loan Officer, before transitioning into her leadership role, where she has recruited, hired and trained Loan Officers.
