What Is the GMCC Hermes Mortgage Program?
The GMCC Hermes Mortgage Program is designed for borrowers who may not fit neatly into conventional mortgage underwriting guidelines. Tailored as a non-QM (non-qualified mortgage) solution, Hermes empowers self-employed individuals, business owners, real estate investors, and employees with non-traditional income streams to secure financing without the burdensome paperwork typically demanded by banks.
Hermes stands out with its focus on flexibility in income documentation. Unlike traditional loan programs requiring full tax returns or complex profit-and-loss statements, Hermes accepts verbal verifications of employment (VOE) and even short-term bank statements as qualifying tools. This creates a streamlined path to homeownership and investment opportunities, particularly for borrowers who are financially strong but do not have “standardized” income documentation.
Whether purchasing a primary residence, financing an investment property, or refinancing, Hermes makes the process simpler, less intrusive, and more borrower-friendly.
Key Features and Highlights
The GMCC Hermes program offers several borrower-friendly features that distinguish it from other loan products:
- Verbal employment verification accepted for both self-employed and W-2 employees.
- No P&L (profit and loss) statement required if the borrower qualifies with simpler documentation.
- Just 3 months of personal bank statements needed for income verification.
- 100% of deposits considered, averaged across 3 months, giving borrowers maximum income credit.
- 70% verbal VOE coverage is allowed, improving accessibility.
- Reduced rate hits on rental properties, only a minor adjustment at a 70% LTV level.
- Higher LTV options, with Hermes CRA going as high as 80%.
- Available in all counties across 11 states and districts, including major markets like California, New York, Illinois, and Texas.
Flexible Income Verification Options
One of the most attractive benefits of the Hermes program is the flexibility around how income is documented. In traditional mortgage lending, strict compliance with tax returns, employer letters, or CPA-prepared P&L statements often excludes otherwise-qualified borrowers.
Hermes eliminates these rigid barriers by instead leaning on verbal verifications and bank statements. This structure avoids penalizing self-employed professionals or business owners whose tax filings may not fully reflect their real earning ability. Instead of requiring exhaustive documentation, Hermes focuses on practical metrics of financial health that better capture a borrower’s real income picture.
Verbal VOE for Employed and Self-Employed Borrowers
For employed and self-employed applicants alike, Hermes adopts the Verbal Verification of Employment (VOE) approach. Unlike many traditional underwriting processes that require written employer verifications or multiple years of official records, the verbal VOE process simplifies things dramatically.
A simple phone or verbal confirmation can suffice to establish employment status. For self-employed individuals, confirming business activity over the phone or verbally can meet eligibility, eliminating the need for burdensome paperwork. This approach makes Hermes a time-saving, hassle-free option for borrowers with consistent employment or business longevity.
No P&L Requirement if Qualified
Many self-employed borrowers dread the request for a profit and loss (P&L) statement. Not only can it be costly to prepare with an accountant, but it may also reflect deductions and write-offs that lower the “paper” income compared to actual cash flow.
The GMCC Hermes program does not require a P&L statement if the borrower qualifies under its income calculation guidelines. By freeing borrowers from this step, Hermes helps more self-employed professionals qualify based on what’s in their bank account and what they deposit, instead of their minimized taxable income.
Bank Statement Qualification Made Simple
3 Months of Personal Bank Statements
Most bank statement loan programs require 12 to 24 months of statements, which can be cumbersome to provide and unnecessarily inflate the time needed for loan approval. Hermes significantly reduces that burden, requiring only 3 months of personal bank statements.
This shorter timeframe ensures that borrowers can qualify quickly without gathering a year or more of historical records, while still giving lenders sufficient insight into the borrower’s deposit trends.
100% of Deposits Counted / 3-Month Average
Instead of adjusting for potential expenses or only including partial deposit values, Hermes gives borrowers credit for 100% of deposits shown. The program then uses the average deposit amount over the 3 months to determine monthly income.
This straightforward calculation can substantially boost the borrower’s qualified income amount compared to stricter non-QM programs. It rewards strong financial activity and ensures that borrowers are evaluated fairly based on their actual cash flow.
Employment and VOE Flexibility
Understanding the 70% Verbal VOE Option
Hermes goes even further with its 70% VVOE acceptance policy. This means that if at least 70% of the required verification can be determined verbally, the requirement is satisfied. This unique allowance expands access to borrowers who may not have every document or formal confirmation available but still present a clear and reliable employment/income profile.
For example, self-employed borrowers who can confirm their active business via phone checks or verbal records can move forward without being slowed down by demands for exhaustive paper trails.
Rental Property Loan Advantages
Real estate investors often face higher costs in financing, especially when working with non-QM loans. One feature that makes Hermes particularly appealing for investors is its reduced rate impact on rental properties.
Reduced Rate Hit for 70% LTV Non-QM Loans
When financing a rental property through Hermes, the loan only incurs a 0.25% rate hit at a 70% LTV. Compared to the steeper adjustments typically applied to non-QM rental property loans, this minor rate hit helps investors preserve strong returns while still leveraging real estate financing.
This advantage makes Hermes a compelling solution for seasoned investors looking to expand portfolios and for new investors who need a cost-effective non-QM entry point.
Higher Loan-to-Value Options
Hermes CRA Program Up to 80% LTV
While many non-QM programs cap their loan-to-value ratios at 70% or 75%, Hermes expands opportunities through its CRA program, which allows up to 80% LTV.
This higher borrowing limit provides greater flexibility for both primary residence buyers and investors. For borrowers with strong cash flow but limited upfront capital, the ability to finance at 80% LTV can be the difference between qualifying for a property and being sidelined. It also makes Hermes one of the more competitive non-QM products in terms of leverage.
States Where Hermes Program Is Available
The GMCC Hermes program is currently open to borrowers in all counties within the following states and jurisdictions:
- California
- Colorado
- District of Columbia
- Georgia
- Illinois
- Nevada
- New Jersey
- New York
- Texas
- Virginia
- Washington
By covering all counties in these regions, Hermes ensures broad accessibility in both urban and rural settings. Borrowers across major metro hubs like Los Angeles, New York City, Chicago, Houston, and Washington D.C. can all take advantage of the Hermes program’s flexibility.
Why Borrowers Choose GMCC Hermes
Borrowers gravitate toward Hermes because it cuts through the red tape of traditional mortgage processes. For many, the challenge of producing years of tax returns, an accountant-prepared P&L, or 12 months of bank statements makes traditional and even many non-QM programs impractical.
Hermes removes those barriers by valuing practical, real-world financial indicators: bank deposits, verbal employer confirmations, and simplified documentation. Investors appreciate the lower rate hits and higher LTVs, while self-employed professionals value the streamlined income recognition that reflects their true financial strength.
Final Thoughts: Is Hermes Right for You?
The GMCC Hermes Mortgage Program is an ideal fit for borrowers who:
- Are self-employed or business owners with fluctuating tax-deductible income.
- Have consistent cash flow demonstrated in bank accounts but not fully captured on tax filings.
- Prefer a simplified documentation process with no P&L requirements.
- Plan to finance rental properties with minimal rate penalties.
- Need higher borrowing power, with up to 80% LTV under Hermes CRA.
- Live in one of the 11 states (or D.C.) where Hermes is available.
For many, Hermes is not just a mortgage program but a pathway to financial flexibility and expanded opportunities in both personal and investment real estate. By prioritizing accessibility, simplicity, and borrower-friendly terms, it carves out a unique space in the non-QM lending market.
