FHA recently made quite a few changes to their mortgage underwriting guidelines. One of the changes that can help some consumers is their change in regards to using commission income to qualify for a mortgage.
This change allows commission income to use as qualifying income when a borrower has at least 12 months history receiving the income. This guideline is a shift from conventional loans and the previous FHA guidelines of 24 months required commission work history.
Many people believe that they have to have a commission job for 24 months before they could buy a house. But now with an FHA Loan a consumer may qualify with just 12 months work history.
What is happening today in mortgage lending: Shirley Nault has been a mortgage professional for over 30 years. Visit her other mortgage web sites go to: www.shirleynault.com
2 comments:
What if a person went from a commission based job as a loan officer to a salary plus commission job as a Mortgage Loan Manager? Would the salary still be averaged over 2 years?
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The commission income needs to be over two years. You would be able to count the current base salary if he has been receiving for a least 30 days. The underwriter may question why the change in pay?
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