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Salary + Commission: Need History of Commissions

We have a borrower who averaged $160,000 over the last two years in a commission sales job. He just started a new job with an $85,000 base salary, but with much more commission potential.

We may be able to use the average of his previous years’ commissions even though they were earned at a different employer. But there is a no guarantee. Underwriters will want to see some commission history at the new job and they will want to make sure the borrower is in the same field.

The borrower initially told us that he “makes $175,000 per year” and he no doubt will make more than that this year. A careful pre-approval process is required to ensure how much income we can attribute to the borrower so he does not buy a property he cannot now qualify for b/c he just switched commission jobs.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646