Using commission income on a conventional mortgage: history, W-2 vs 1099, and DTI. From The 2 Mortgage Guys at Luminate Bank in Kokomo, nationwide.
Home
Conventional Loans
Commission Income
Yes. Conventional lenders regularly qualify borrowers who earn commission, as long as the history is stable and well documented. Expect underwriters to average commissions over roughly two years and watch carefully for declining trends.
Variable pay is usable when history proves it is reliable.
These issues slow or reduce usable income.
More clarity means fewer underwriting conditions.
We calculate income the way automated underwriting will — before you shop.
Step
Related guides to help you compare options and move toward pre-approval.
2MG Daily
Recent articles from our blog on conventional loans, credit, and homebuying.
No related blog posts yet. Check back soon for the latest updates.
Share your W-2s and year-to-date pay with Ryan or Steve — we will calculate the commission average conventional underwriting can use.