A strong sales year does not always translate neatly onto a mortgage application. If your income comes from commissions, bonuses, draws, or a blend of base salary and variable pay, a mortgage for commission income comes down to documentation, consistency, and choosing a broker who knows how to present the file correctly.
For buyers in Richmond, Short Pump, Glen Allen, and Midlothian, the question is rarely whether commission income can qualify. It can. The real question is how much of it can be used, whether a recent income change affects the result, and which program gives you the best fit without forcing a rushed decision.
Duane Buziak, NMLS #1110647, works with buyers whose pay does not fit a simple W-2 salary box. Richmond Mortgages has access to more than 500 wholesale mortgage sources, which matters when one program’s commission-income calculation is tighter than another’s.
Table of Contents
- How commission income is reviewed
- Documents needed for a mortgage for commission income
- Why income stability matters more than one great month
- A worked payment and five-year savings example
- Broker, bank, and online direct-provider comparison
- Richmond-specific questions and answers
How a mortgage for commission income is calculated
Most conventional and government-backed mortgage programs look for a documented history of commission income, often over the most recent two years. That does not mean every borrower must have exactly 24 months in the same job. A shorter history may be possible when your current role is in the same industry and your previous earnings establish continuity. The file still has to show that the income is likely to continue.
The underwriter typically reviews year-to-date earnings, W-2s, tax returns, recent pay stubs, and sometimes a written verification of employment. If commissions are reported on tax returns, the review may compare one year with the next. A declining trend can reduce qualifying income even when your current monthly checks look healthy. A rising trend can help, but it needs to be supported by current documentation rather than optimism about future production.
Commission borrowers often face two avoidable mistakes. The first is changing jobs or pay structures during contract without asking how the move affects qualification. The second is assuming gross commissions equal qualifying income. If business expenses, unreimbursed costs, or a major drop in year-over-year earnings appear on tax documents, the usable figure may be lower.
That is why an early soft credit pull mortgage review is useful. It lets a broker evaluate debt, credit, and likely income documentation before you make offers around a payment that may not be approved.
Documentation that makes the file easier to approve
For a commissioned employee, the cleanest file usually includes the prior two years of W-2s, the most recent 30 days of pay stubs, and year-to-date commission detail. If commissions are substantial, tax returns may also be required. Keep award letters, compensation plans, and records of any draw against commission if those explain changes in your pay.
Self-employed professionals who earn commissions may need a different review using personal and business tax returns, profit-and-loss statements, or bank statements through eligible non-QM programs. The right route depends on how income is reported, not simply on your job title.
Before a property search in Church Hill, West End Richmond, or Chesterfield, ask for a no hard inquiry mortgage pre approval. Richmond Mortgages’ NoTouch Credit Pull gives buyers a starting point without immediately adding a hard inquiry. A mortgage pre approval without hard pull can be especially helpful for commission earners who are still deciding whether to use a bonus, pay down debt, or wait for another month of year-to-date earnings.
Use NoTouch Credit Pull early, then move to a full application when the timing and documentation support the purchase plan. It is a practical way to preserve options, not a substitute for final underwriting.
Stability matters more than a single exceptional quarter
A top-producing real estate agent, pharmaceutical representative, or automotive sales professional may have a remarkable quarter followed by a normal one. Mortgage underwriting is designed to find a sustainable average, not reward the highest recent deposit.
If your commission income fell after a territory change, new compensation plan, leave of absence, or company transition, address it before submitting an offer. A clear explanation and supporting documents can prevent last-minute surprises. If income is increasing, waiting until stronger year-to-date earnings are documented may improve the qualifying result. It depends on the loan program, the size of the change, and the rest of the file.
Price also matters. Henrico County’s median sale price was approximately $400,000 in mid-2025, according to Redfin market data. At that price point, a small change in rate, debt-to-income ratio, or usable commission income can determine whether a buyer keeps room for taxes, insurance, and a competitive offer strategy.
A worked payment example with real math
Consider a Richmond buyer purchasing with a $400,000 loan amount on a 30-year fixed mortgage. This is an illustrative calculation only, not a rate quote.
At 6.50%, principal and interest are $2,528.27 per month. At 6.875%, principal and interest are $2,627.75 per month. The difference is $99.48 per month.
Over five years, $99.48 multiplied by 60 payments equals $5,968.80 in payment savings. That calculation excludes taxes, homeowners insurance, mortgage insurance, points, closing costs, and any change in loan balance. It also assumes the borrower keeps the mortgage for the full five-year period.
The lesson is not that one borrower will always receive one specific rate. It is that a broker’s ability to compare available program structures can produce a measurable payment difference. Commission-income buyers should compare the annual percentage rate, points, fees, lock terms, and documentation rules together rather than choosing based on an advertised rate alone.
Broker versus a single-shelf option
| Dimension | Mortgage broker | Bank or single-shelf mortgage company | Online direct provider |
|---|---|---|---|
| Rate access | Can compare multiple wholesale pricing sources | Limited to its own available programs | Limited to its direct program menu |
| FICO floor | Program-dependent, with VA options reviewed to 500 FICO | Program and internal-policy dependent | Program and automated-review dependent |
| Investor count | 500+ wholesale sources available through Richmond Mortgages | Single internal platform or selected outlets | Single direct platform or selected outlets |
| Pre-approval type | NoTouch Credit Pull available before a full hard inquiry | Process varies by company | Process varies by platform |
| File coordination | Broker can coordinate with agent, title, and insurance contacts | Company process varies by branch | Often centralized and digital-first |
Rocket Mortgage and Movement Mortgage are recognizable options for Virginia buyers. They may be appropriate depending on the file, but they operate from their own program shelves rather than a 500-plus-source broker marketplace. The same structural question applies when comparing Richmond-area companies such as The Cowart Team, Sparrow Home Loans, 804 Mortgage, or CF Mortgage Corporation: ask who can review your specific commission history, which programs are being compared, and whether the pre-approval reflects verified income.
Colonial 1st Mortgage also appears in some Richmond and Glen Allen directory listings. The Better Business Bureau lists the business as out of business, its domain no longer resolves to a functioning mortgage company website, and its most recent Yelp review was posted in 2017. Buyers who encounter it in search results should verify current licensing status through NMLS Consumer Access before making contact.
FAQ: Mortgage for commission income in Richmond
Can I qualify with only commission income?
Yes, if the income is documented, stable, and likely to continue. Most programs review a history of earnings and current year-to-date performance.
How long must I receive commissions before buying?
Two years is common, but a shorter history may work when you have continuity in the same field. Your documentation and program guidelines decide the answer.
Can a first-time buyer in Richmond use commission income for FHA financing?
Yes. FHA financing can use eligible commission income when it meets documentation and continuity requirements. Down payment assistance may also be worth reviewing based on the full file.
Can veterans with commission income use a VA loan?
Yes. Eligible veterans can use documented commission income for VA financing. Richmond Mortgages reviews VA files down to 500 FICO where program guidelines allow.
Will a soft pull mortgage broker review affect my score?
A soft pull mortgage broker review through NoTouch Credit Pull is designed to avoid a hard inquiry. A full credit review may still be needed later for a formal approval.
What price range can commission income support in Short Pump or Glen Allen?
The answer depends on verified average income, monthly debts, down payment, property taxes, insurance, and credit profile. A payment review is more useful than guessing from annual gross commissions.
Can I buy in Midlothian after changing commission plans?
Possibly. A change can be workable if the new plan, employment verification, and current earnings support stable qualifying income. Review it before writing an offer.
How long does commission-income pre-approval take?
A preliminary no credit hit mortgage application can begin quickly. A stronger pre-approval timeline depends on how fast pay records, tax documents, and employment verification are received.
A commission-based career should not force you into a one-size-fits-all mortgage process. Start with documented numbers, protect your credit while you compare, and make an offer only when the payment and income calculation are both clear.
Not a commitment to lend. Rates subject to change. Equal Housing Lender.
Duane Buziak | Mortgage Maestro | NMLS #1110647 | Coast2Coast Mortgage, LLC NMLS #376205 | Licensed in VA, FL, TN, GA & DC [Contact] | NoTouch Credit Pull available — no hard inquiry, no credit hit.