Securing a Mortgage With Commissions and Bonus Income: Freddie Mac and Fannie Mae’s Stance

In today’s world, a typical 40-hour-per-week job is fading into the horizon. It’s becoming more common to earn a living through commissions, bonus income and other unique salary schedules.

What does this mean when it’s time to apply for a mortgage? You can probably guess that lenders like to see a steady form of income, and commissions don’t exactly fall into that category.

If commissions and bonus income make up a significant portion of your salary, you still have plenty of options at mortgage time! Freddie Mac and Fannie Mae both allow borrowers to use these nontraditional sources of income to qualify for a mortgage.

In order to select the best mortgage product for your needs, it’s important to work with a mortgage broker who understands the details of every program out there. When it comes to commissions and bonus income, there are a few differences between Freddie Mac and Fannie Mae programs. Here is what you need to know:

• Freddie Mac requires a history of at least two years of steady commission or bonus income to use these funds to qualify for a mortgage.
• Fannie Mae will consider a history of between 12 months and two years of commission if supporting documentation is provided.
• Freddie Mac requires proof that commissions or bonus income will likely continue for at least three years, while Fannie Mae does not have this stipulation.

These details could make a big difference when you’re ready to shop for a loan. Fortunately, MortgageDepot makes it easy! We start by assessing your financial profile and personal goals, and the final result is a mortgage program that matches your unique situation. Contact MortgageDepot today to learn how to qualify for a loan with your commissions and bonus income!

Connect with one of our loan consultants to learn more.