Yes, you can get a commission based income mortgage. Underwriters just count your pay differently from a fixed salary: commission is usually averaged over two years and verified against your tax returns. This article, written by Duane Buziak, NMLS #1110647, of Blue Mountain Mortgages by Duane Buziak, explains how that average works, which documents to gather, and how USDA, VA, FHA, and conventional programs treat variable pay. It also walks through a worked example at an Augusta County price point. The first practical step is a NoTouch Credit Pull, which lets you see where you stand before anything touches your score.
How Underwriters Count Commission Income for Rockingham and Augusta County Buyers
Consider a medical device rep who lives near JMU in Harrisonburg. She earns a $3,000 monthly base plus commission that swings from $2,000 in a slow month to $7,000 in a strong one. She assumes a bank will look at her slowest month and say no. In Rockingham County, where the Census Bureau’s QuickFacts page lists the median value of owner-occupied homes, that assumption keeps a lot of qualified buyers on the sidelines.
Three terms matter here. Base pay is the guaranteed, fixed part of your paycheck. Variable income is everything that moves with performance: commission, bonuses, overtime. Qualifying income is the monthly figure the underwriter actually uses to calculate your debt-to-income ratio. For base pay, it is simple. For variable pay, it is an average, and the standard window is 24 months.
The logic is stability. An underwriter is asking whether this income is likely to continue at the level documented. So commissions are added up across the documented period and divided by the number of months. If you earned $42,000 one year and $54,000 the next, the average is $48,000 over 24 months, or $4,000 a month.
The trend changes the math. If your commissions are declining, underwriters generally use the lower, more recent figure, or may question whether the income is stable at all. If your commissions are rising, you still do not get to use your best month or your best quarter. The average governs.
The myth that commission earners cannot be approved is just that. The pay structure is not the hurdle. Documentation and history length are. A buyer in Staunton or Waynesboro with two clean years of paperwork is in a stronger position than a salaried buyer who changed jobs last month.
Documents and Mistakes That Decide Whether Commission Income Counts
Underwriters build the average from paper, so the file needs to be complete before you apply. Expect to provide:
- Two years of W-2s from your employer
- Recent pay stubs showing year-to-date commission
- Two years of federal tax returns, with all schedules, when commission is a significant share of your pay
- A written employer verification confirming your pay structure and the likelihood it continues
The tax return matters more than most buyers expect. If you pay your own travel, supplies, or home office costs and deduct them as unreimbursed business expenses, underwriters may subtract those from your commission income when they calculate the figure they use. Your W-2 might say $54,000 while the qualifying number lands lower. The Fannie Mae Selling Guide addresses this in its variable income section, and because the guide is revised periodically, your loan file should be reviewed against the current version.
Mistakes that cost buyers approval
- Switching employers or pay plans just before applying. A new plan can reset the clock on your history, especially when the structure changes from salary to commission.
- Relying on one big quarter. A single spike gets averaged away, and it can make a later dip look like a decline.
- Mixing 1099 and W-2 income. The two are documented differently, and combining them without a plan creates confusion in the file. If part of your pay is freelance, our guide on getting a mortgage as a freelancer covers that side of the file.
- Failing to separate bonus from commission. Each is evaluated on its own history, so your pay stubs and employer letter should label them clearly.
One process note on credit. Duane Buziak offers a NoTouch Credit Pull, which lets him preview your credit and run a pre-qualification without a hard inquiry. Some providers cannot issue a pre-approval without a hard pull, and each one can cost you score points. If you are comparing several options while your commission history is still being sorted out, that difference is worth knowing. For a fuller checklist, see how to prepare for a mortgage application.
How USDA, VA, FHA, and Conventional Loans Treat Commission Pay
USDA. Zero down is available on USDA Rural Development loans, and for much of the Valley it is the strongest lane (see our overview of zero down payment mortgage programs). Eligibility has two parts: the property and the household income. Check the address on the USDA’s single family property eligibility map, then compare adjusted household income against the county limit on the USDA’s income eligibility page. Limits vary by county and household size, so pull the current figures for Rockingham, Augusta, Shenandoah, Warren, Page, and Frederick as of your application date.
Here is an angle many USDA write-ups skip: the limit applies to the entire household, not just the borrower. A strong commission year for you, or for a spouse, can raise the household figure and matter at the margin. Underwriters apply their own averaging to commission for that calculation, so the number to plan around is documented income, not your best year.
VA. Eligible veterans can buy with no down payment, and variable income typically needs a two-year history. Veterans with a service-connected disability are generally exempt from the VA funding fee, which the VA explains on its funding fee page. A VA cash-out refinance can reach 100% loan-to-value, which is a separate question from purchase qualifying.
FHA. FHA offers more flexibility on credit scores with 3.5% down (see low credit score mortgage options for how that plays out). Commission is averaged over two years under HUD Handbook 4000.1, so the logic matches the rest of the market.
Conventional. For 2026, the conforming loan limit is $806,500, rising to $1,249,125 in high-cost areas. Variable income is documented through tax returns and the same 24-month average. A conventional cash-out refinance tops out at 90% loan-to-value.
The programs differ in overlays, which are the extra rules a specific company adds on top of agency guidelines. Duane Buziak is an independent broker with access to 500+ wholesale lenders, so your pay structure can be matched to the program and investor whose overlays fit it best, instead of being forced through one company’s rules. The difference between mortgage brokers and direct lenders explains why that matters.
Worked Dollar Example: A $275,000 Home on Commission Income
Suppose a buyer in Augusta County earns a $3,000 monthly base. Commission was $42,000 in the earlier year and $54,000 in the later year. The average is ($42,000 + $54,000) / 24 = $4,000 a month, so qualifying income is $7,000 a month. Now reverse the trend: $54,000 earlier, $42,000 later. Underwriters would likely use the lower $42,000 / 12 = $3,500 a month, and qualifying income falls to $6,500.
USDA scenario. Purchase price $275,000, zero down. The upfront guarantee fee (1% as of the most recently published rate) is $2,750, financed into a loan of $277,750. All rates here are illustrative assumptions, not a quote. At 6.0% over 30 years, principal and interest is about $1,665. The annual fee (0.35% as of the most recently published rate) adds about $81 a month. With assumed taxes of $150 and insurance of $95 a month, the full payment is about $1,991.
Against $7,000 in qualifying income, the front-end ratio (housing payment only) is 28.4%. Add $450 in other monthly debts, and the back-end ratio (all debts) is $2,441 / $7,000, or 34.9%. On the declining-trend $6,500, those become 30.6% and 37.6%. If your own ratio runs higher, see how to get a mortgage with a high debt-to-income ratio.
FHA comparison. Down payment at 3.5% is $9,625, leaving a base loan of $265,375. The upfront MIP (1.75% as of recent HUD rules) is $4,644, financed, for a loan of about $270,019. At the same assumed 6.0%, principal and interest is about $1,619. Annual MIP at 0.55% adds about $124 a month. With the same taxes and insurance, the payment is about $1,988.
The monthly payments land within a few dollars of each other. The real difference is the $9,625 in cash FHA requires up front, which USDA does not. FHA also has no household income cap, while USDA does. Both annual fees can last the life of the loan at these down payments.
Comparison Table: Duane Buziak vs. Other Mortgage Options for Commission Earners
The structural difference is shelf width. A broker places your loan across hundreds of wholesale options, while a retail company prices from its own products. Duane Buziak has produced $95.6M, holds 1,400+ five-star reviews, ranks in the Top 1% nationwide, and was named a Scotsman Guide Top Originator in 2025 and 2026. That track record comes from placing variable-income files with the right program, not from one rate sheet.
| Provider | Loan shelf | Pre-approval method | Fit for variable income |
|---|---|---|---|
| Duane Buziak, Blue Mountain Mortgages (independent broker) | 500+ wholesale lenders: USDA, VA, FHA, conventional, jumbo, investment | NoTouch Credit Pull, no hard inquiry to start | Matches your pay structure to the program and investor with the most workable overlays |
| ALCOVA Mortgage (regional retail) | Company’s own product menu | Confirm on their public site | Depends on that company’s overlays; ask directly |
| Rocket Mortgage (national retail) | Company’s own product menu | Confirm on their public site | Depends on that company’s overlays; ask directly |
| Movement Mortgage (national retail) | Company’s own product menu | Confirm on their public site | Depends on that company’s overlays; ask directly |
Competitor details change, so check each company’s public site for current programs and pre-approval steps. With any provider, ask how they average commission, whether they add overlays beyond agency rules, and exactly which documents they will need from you. Our list of questions to ask a mortgage lender before committing is a good starting point.
Commission Income Mortgage FAQ for Valley Buyers
Can I get a mortgage in Harrisonburg with only one year of commission income?
Sometimes. Two years is the standard, but a shorter history can work when you have prior experience in the same field and your employer verifies the pay plan. Some programs and investors are more flexible than others. A broker can check options before you apply.
Does Waynesboro qualify for a USDA loan if I earn commission?
Eligibility turns on the property address and your household income, not how you are paid. Waynesboro is an independent city, so some addresses qualify and others do not. Check the specific address on the USDA eligibility map, as of your application date.
How is commission averaged for a Staunton FHA loan?
Underwriters generally add your documented commission over the past 24 months and divide by 24. If earnings are declining, they typically use the lower figure. Your W-2s, pay stubs, and tax returns support the calculation, per current HUD Handbook 4000.1 guidance.
Do Frederick County buyers in Winchester need two years of tax returns?
Usually yes, when commission is a significant share of your pay. Winchester is an independent city next to Frederick County, but the documentation rules are the same: two years of returns, W-2s, and recent pay stubs. Requirements can vary by program and investor.
Does Warren County USDA income include my spouse’s commission?
Yes. The USDA limit applies to adjusted household income, so a spouse’s documented commission generally counts alongside yours. Compare the total against the current Warren County limit for your household size, as of your application date.
Can a Front Royal veteran use a VA loan with commission pay?
Yes. VA loans allow eligible veterans to buy with no down payment, and commission is typically averaged over a two-year history. Your certificate of eligibility and income documents drive approval. Confirm current VA guidance and funding fee status for your situation.
Does Luray in Page County have USDA eligibility maps to check?
Yes. The USDA’s online property eligibility map lets you enter any Luray or Page County address. Many Page County properties fall in eligible areas, but confirm each address, as of the date you search, before building a plan around it.
What if my commission dropped last year in Shenandoah County?
Underwriters will generally use the lower, more recent figure, or may ask for an explanation. Good documentation of the cause, such as a territory change or a one-time event, can help. A broker can test whether a different program works better.
Commission Income Counts When It Is Documented and Consistent
Variable pay is not a barrier. A clean two-year history, complete tax returns, and a clear employer letter turn commission into qualifying income. The step to take first is a NoTouch Credit Pull, which shows you where you stand without a hard inquiry.
Ready to turn your Blue Ridge homeownership dreams into reality? Contact our local mortgage experts today to explore personalized loan solutions tailored to your unique financial situation. Whether you’re a first-time buyer or looking to refinance, we’ll guide you through every step with the competitive rates and trusted service our Virginia community relies on.