Jumbo Guide
Can Bonus, Commission, or Overtime Income Be Used?
Variable income can count toward a jumbo approval when history and continuity are clear. We average what investors will actually use — not the best month on your paystub.
How Variable Income Qualifies
Jumbo underwriters treat bonus, commission, and overtime as usable income when W-2s, paystubs, and employer verification show a consistent pattern — typically over two years — and the income is likely to continue.
One-time signing bonuses, irregular spikes, or a brand-new commission role often get limited or excluded. Declining trends usually pull the average down to the more recent year.
Investor overlays vary and are subject to change.
Variable Income Snapshot
What Helps Variable Income Clear
Small documentation details decide whether overtime and bonuses fully count.
How We Calculate Your Usable Number
No guessing from a single large paycheck.
- •Two-year average of bonus, commission, and overtime when trends support it
- •Adjustment for declining years so your pre-approval matches underwriting
- •DTI impact modeled with and without variable income when history is thin
- •Clear list of docs to gather before you shop Indiana homes above conforming limits
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Frequently Asked Questions
Can bonus, commission, or overtime income be used for a jumbo loan?
Yes — when the income is documented, received consistently, and likely to continue. Jumbo investors typically average two years of history and may exclude one-time spikes.
How many years of history do I need?
Most programs want a two-year track record of the bonus, commission, or overtime. Newer variable income may be limited or excluded until a stronger history builds.
What if my bonus dropped last year?
Declining variable income often forces underwriters to use the lower recent year or average carefully. We review W-2s and paystubs before you lock a purchase strategy.
Does commission-only employment work?
It can, with a solid two-year average and stable employer. Expect tighter scrutiny on continuity and sometimes stronger credit or reserve requirements.
Want Your Bonus and Overtime Counted Correctly?
We average variable income the way jumbo investors will — so your buying power is real.
The 2 Mortgage Guys
Ryan Minick and Steve DeLon — Branch Managers & Senior Loan Officers at Luminate Bank. Based in Kokomo, Indiana. Lending nationwide since 2005.
Contact
Ryan Minick NMLS# 203249
Steve DeLon NMLS# 202876
Luminate Bank NMLS# 1281698
Kokomo's Mortgage Team. Lending Nationwide.
1221 Appletree Lane, Kokomo, IN 46902
Luminate Bank NMLS 1281698 Bank Headquarters 2523 S. Wayzata Blvd., Suite 100 Minneapolis, MN 55405 (952) 939-7200. This is not an offer to enter into an agreement. Information provided is outlining the minimum down payment requirements as allowed by specific loan program and product guidelines and any information, rates and programs are subject to change without prior notice and may not be available in all states. All loans are subject to credit and property approval. Luminate Bank is not affiliated with any government agency. All rights reserved.
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