Can I use overtime, bonus, commission, or part-time income for FHA?
Often yes when the income is documented, stable and likely to continue. Overtime and bonus income commonly use a two-year history, but a consistent history of at least one year may qualify. Commission and part-time income have their own rules. The lender also reviews the recent trend.
What this actually means.
FHA may accept variable income when the history, documents and recent trend support that it is likely to continue. The calculation depends on the income type and usually uses a conservative average when earnings are falling. Overtime, bonus, commission and part-time income are not all treated the same way, so the lender must review the actual history and current year-to-date earnings.
What this looks like on a real file.
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.