Standard guidelines recommend a 2-year history of commission income to count it as qualifying income. However, lenders may consider a shorter history if there are positive factors to offset the shortfall. MLOs should always take the application and allow underwriting to review the overall credit risk.
“Generally, a minimum history of two years is recommended for commission income, but a shorter period may be considered with compensating factors.”
— Fannie Mae Selling Guide, B3-3.1-05: Secondary Employment Income
[References:, , Fannie Mae, Commission Income Requirements, , SAFE MLO National Test Study Guide, ]
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