Variable income

Real talk 1 Minute

Variable income refers to any type of income that is not guaranteed or fixed and can
fluctuate over time. From a mortgage underwriting perspective, variable income can
pose a risk as it may not be stable enough to support regular mortgage payments.
According to the Consumer Financial Protection Bureau, variable income can include bonuses, commissions, overtime pay, self-employment income, and investment income.


Lenders typically evaluate the stability and consistency of variable income over a
specific period of time, such as two years, to determine its reliability.
To assess the risk associated with variable income, lenders may require additional
documentation such as tax returns, pay stubs, and bank statements. They may also
consider factors such as the borrower’s industry, job stability, and past earnings history.


Overall, borrowers with variable income may face additional scrutiny during the
mortgage underwriting process and may need to provide more documentation to
demonstrate their ability to repay the loan. Here are a few of the top variable income
jobs.

Real estate agent

Sales representative

Freelance writer or designer

Uber or Lyft driver

Consultant

Waiter or waitress

Actor or performer

Stock trader or investor

Entrepreneur or business owner

Delivery driver

These jobs typically have variable incomes because they may depend on factors such as
commission rates, seasonal demand, market conditions, and customer demand.

DJ Sessions NMLSR ID .271823


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NMLSR ID .271823 & 2531674

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