Requirements
Can I use overtime income for FHA?
Short answer
Yes, if it has at least a 2-year history and is likely to continue. The underwriter usually averages the last 2 years.
Plain-English explanation
Recent overtime that did not exist before usually doesn't count yet. Overtime that has been paid for 2+ years and is documented on W-2s and pay stubs typically qualifies as effective income.
What can change the answer?
Income type, employment history, debt ratio, reserves, automated underwriting findings, and lender overlays can change the answer.
Want the real answer for your file?
FHA guidelines are the rule. Your credit, income, payment, property, and county limit are what decide the actual answer.
More FHA questions on Requirements
Educational only. FHA guidelines, lender overlays, rates, fees, and underwriting requirements can change. Final eligibility depends on full underwriting review.