Can I use overtime income for FHA?
Yes, if it has at least a 2-year history and is likely to continue. The underwriter usually averages the last 2 years.
What this actually means.
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.
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.