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How is my income determined for qualifying for a fha loan if I make commission only and it varies?

by lianna88986 from Mantua, Utah. Mar 30th 2017 Reply


William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,924 contributions

For commissioned borrowers, you have to have a consecutive 2 year history and if your income, year over year has increased, then we take the 2 year monthly average.. if your year over year is declining, then we take your most recent year divided by 12 months, to determine your monthly income. This is pretty standard for all lending products,,, There are a few exceptions if you have less than 2 years, but more than one year, so we would need to review your complete loan profile to advise you correctly. I'm a preferred Lender with Arizona and California being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Mar 30th 2017
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Nolan Merritt (Nolan_Merritt)
#35 ranked lender in Utah - 3 contributions

Commissions are averaged over the previous 2 years if the year over year totals are consistent or increasing. If yearly totals are decreasing, then a 1 year average is used. How long have you received commissions. FHA allows commission for less than 2 years if your employment is steady, and commissions are very likely to continue.I'm located in Salt Lake, and licensed in UT. I even know where Mantua is, and how to pronounce it. If you need any assistance with financing a home, please contact me. Nolan Merritt, 801-647-4600 cell. NMLS #250045

Mar 31st 2017
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