Can I use overtime income for FHA?
Often yes. Two years is common, but a consistent documented history of at least one year may qualify when the income is likely to continue. The lender also reviews the recent trend.
What this actually means.
The lender documents how long the overtime has been earned and whether it is stable. The qualifying amount generally uses the lower of the applicable historical average and the most recent one-year average, subject to current HUD and lender rules.
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.