Commission Income
Direct definition
Commission income is earnings based on sales performance rather than a fixed salary, which lenders typically average over a history of tax returns.
Written by the Vabasso Mortgage Editorial Team · Reviewed against agency and federal sources · Read our editorial policy for how we research and review mortgage content
Plain-English explanation
Because commission income can fluctuate, lenders generally review one to two years of tax returns or pay records to calculate an average that can be used for qualification. A declining trend may require an explanation or additional documentation.
Why it matters
Understanding how commission income is averaged helps borrowers anticipate what income figure a lender may actually use to qualify them.
Where you may see it
- Tax returns
- Pay stubs
- Underwriting file
A real-world example
Educational and illustrative only
A common misunderstanding
Commission income is not disqualified from mortgage use; it simply requires a documented history and consistent calculation method.
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- Author
- Vabasso Mortgage Editorial Team
- Reviewed by
- Vabasso Mortgage Licensed Advisory Team
- Last reviewed
- July 30, 2026