Yes — FHA can count commission income when you have a stable history, usually about two years, and the income is properly documented on tax returns and paystubs. Ryan and Steve average commission the way underwriters will, so your pre-approval is not based on a one-time spike.
Commission is variable income — FHA and lenders look at history, documentation, and how it averages over time.
Stable commission over roughly two years is the standard expectation. A shorter track record may work in select cases, but two years is the cleanest path.
Schedule C or W-2 commission must match what you report — write-offs can lower usable income. We align your file with what underwriting will actually count.
Underwriters average commission so a banner quarter does not overstate income. Your qualifying number reflects sustained earnings, not a single peak.
Falling trends may force a lower average or exclusion until income stabilizes. We flag declining patterns early so you can plan accordingly.
Guaranteed base pay plus documented commission often produces the strongest file. The base adds stability while commission boosts total qualifying income.
Gather these before underwriting so commission income counts without delays.
How lenders actually apply commission income to your FHA file.
We run the same averaging and documentation review underwriters use — before you shop for a home.
Step 1
Returns, W-2s/1099s, and current paystubs — we organize everything underwriting will request.
Step 2
Apply FHA averaging without overcounting spikes so your qualifying income reflects real earnings.
Step 3
Explain trends or adjust the purchase budget before you fall in love with a home outside your range.
Step 4
Shop homes using income underwriting will accept — not a best-case estimate that fails later.
Related guides to help you compare options and move toward pre-approval.
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Sometimes if the history is strong and continuance is clear, but two years is cleaner and more widely accepted.
They can reduce self-employed or 1099 usable income. We run both tax-return and add-back scenarios when guidelines allow.
Lenders usually average — a spike alone rarely becomes your full qualifying income.
Yes. Once counted, commission increases qualifying income and can improve debt-to-income ratios.
Ryan & Steve will review tax returns, W-2s, and YTD commission to calculate income that will hold up in FHA underwriting.