Does conventional count overtime, bonus, and commission?
Often. Fannie Mae recommends two years of overtime, bonus or commission history, but at least 12 months may qualify with supporting factors. A lender can require more.
What this actually means.
The lender reviews how often the pay arrives and compares current earnings with prior earnings. Stable or rising income is averaged under the applicable rules. If income is falling, it must first be shown to have stabilized; using the lower year is not automatically enough. Freddie Mac follows its own guide, so confirm the program.
A simple example
Illustration only. This is not an approval or a loan offer.
Where this can move.
Income history, payment frequency, current trend, evidence of stability, program and lender requirements.
Check the sources
Sources checked . Program guidance and lender requirements can change.
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More conventional questions on Income.
Educational only. Conventional loan guidelines, lender overlays, rates, fees, PMI, LLPAs, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with Fannie Mae, Freddie Mac, FHFA, or any government agency.