Can I use bonus income for FHA?
Often yes. Two years is common, but a consistent documented history of at least one year may qualify when the bonus is likely to continue. The lender also reviews the recent trend.
What this actually means.
The lender documents the history, current year-to-date amount and likelihood that the bonus continues. A one-time bonus may not qualify. The amount generally uses the lower of the applicable historical average and the most recent one-year average.
Where this can move.
Income type, employment history, debt ratio, reserves, automated underwriting findings, and lender overlays can change the answer.
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Educational only. FHA guidelines, lender overlays, rates, fees, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with HUD, FHA, or any government agency.