We just faxed over our documents to the bank yesterday for our pre-approval but the wait is killing me. I was wondering how strict lenders are about having a 2 year history on commission income. I work as a massage therapist (if you couldn't tell by my screen name) and the only pay I receive is commission (a %age of the services rendered) and tips (most are shown on my pay stubs). Since I just graduated from massage school in September, I only have 5 months on this current job. Before that I was in school and a stay-at-home mom. My 2007 w2's show a very small income since I only worked part of the year before I left on maternity leave.
So is it safe to assume we don't stand a chance getting approved? My husband certainly doesn't make enough to get us approved. What about FHA loans? Are they a bit more flexible?
per FHA manual
18.104.22.168.4 Commission Income
· Commission income must be averaged over the previous two years. The borrower must provide
copies of signed tax returns for the last two years, along with the most recent paystub.
Unreimbursed business expenses must be subtracted from gross income.