Common challenges
Agency guidelines treat commission income skeptically: it needs a two-year history, and if the most recent year declined, underwriters use the lower year, or the average if the decline is over 25%.
Programs that fit
Bank Statement Loans
A bank statement loan is a non-QM mortgage that calculates self-employed income from 12 or 24 months of personal or business bank deposits instead of tax returns.
Conventional Loans
A conventional loan is a mortgage not insured by the government that follows Fannie Mae or Freddie Mac guidelines.
FHA Loans
An FHA loan is a government-insured mortgage that allows 3.5% down with a credit score of 580 or higher, or 10% down with a score from 500 to 579.
WVOE Loans (Written Verification of Employment)
A WVOE (Written Verification of Employment) loan qualifies you based on a formal verification from your employer, job title, dates of employment, and income, instead of tax returns, W-2s, or pay stubs.
Tips before you apply
- If commissions are declining, a bank statement loan ignores the trend and uses deposits instead.
- Keep one clean account where all commission checks land; mixed deposits slow bank statement review.
- Newly licensed with no two-year history? A WVOE (written verification of employment) program can work with an employer letter.
FAQ
What is the best mortgage for real estate agents & commission earners?
It depends on your documentation and goal. The programs that most often fit are Bank Statement Loans, Conventional Loans, FHA Loans, WVOE Loans (Written Verification of Employment).