Why two years is preferred
Commission income can change from month to month, so lenders commonly review a longer history to calculate an average and identify whether earnings are stable, increasing, or declining.
Credit and Income
Commission income and buying a house
A two-year history is ideal, but not having the full two years is not always a deal breaker. The key is proving that the commission income is stable, documentable, and likely to continue.
A shorter history may work
Some loan programs may consider 12 to 24 months of commission income, especially when the borrower has prior experience in the same industry or line of work. The exact requirement depends on the loan program and full file.
What the lender reviews
Expect a review of year-to-date earnings, prior W-2s or tax returns when required, paystubs, employment history, written verification, commission structure, and the likelihood the income will continue.
Let me review the whole picture
Do not assume you have to wait two years. A strong employment history, consistent earnings, and the right loan program may create options that are not obvious from a generic checklist.
Written by Marta Lillard
25+ years of mortgage experience, explained in plain English.
Mortgage Broker · First Coast Mortgage Funding · NMLS #879436 · Licensed in Florida and Georgia
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