Does conventional count overtime, bonus, and commission?
Often yes, with a documented two-year history. Overtime, bonus, and commission income are typically averaged over the most recent two years. Year-to-date trend matters — declining year-over-year usually means using the lower number, not the average.
Plain-English explanation
Documentation: two years of W-2s + current pay stubs + verification of employment confirming continuance. Conventional underwriting averages the variable income across the most recent 24 months in most cases. If year 2 declined materially from year 1, the lender often uses the lower year. Commission-only income often nets out unreimbursed business expenses. Subject to Fannie/Freddie guidelines.
What can change the answer?
Documentation type, employment stability, year-over-year trends, and any recent job/business changes can change the answer.
Want the real answer for your conventional file?
Conventional guidelines are the rule. Your credit, income, DTI, PMI, LLPAs, and Florida payment math are what decide the actual answer.
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.