--- title: "Commission-Only Sales: Averaging and a Down Year | Ondo Real Estate | Ondo RE" canonical: https://www.ondorealestate.com/blog/commission-income-mortgage-averaging/ --- # Commission-Only Sales: Averaging and a Down Year A recovered March does not erase a down year. The average is the product. [Home](/)[Learn](/learn/)CreditCredit Educational [← Mortgage learning hub](/learn/) Commission-only pay can support a mortgage when the history is documented. The underwriter is usually averaging 12 or 24 months, not taking your best listing year. A down year is usually averaged in, not ignored. A declining trend can reduce the qualifying average even if the most recent month recovered. Snapshot as of 2026-08. ## How the average is built When income is overtime, bonus, commission, or 1099, underwriters typically average a documented history (often 12–24 months) rather than using the highest recent month. A simple decision framework: - **Stable or rising two-year history.** Many files average the two years (or year-to-date plus last year, depending on the guide and the trend). - **Down year.** The low year usually stays in the math. You can explain it. You rarely get to delete it. - **New to commission.** Time in the same line of work matters. Switching from salaried teaching to 100% commission real estate last month is not the same file as a decade of W-2 plus commission in the same industry. ## Documents that usually show up - Two years of W-2s (if any base) and/or 1099s plus tax returns and transcripts. - Year-to-date paystubs or a commission statement that matches deposits. - A written explanation for a gap, a broker change, or a market down year. If you are 1099 rather than W-2, use the [1099 documentation checklist](/blog/1099-mortgage-documentation-checklist/). Overtime on a W-2 is a different “likely to continue” test: [overtime guide](/blog/w2-overtime-likely-to-continue/). ## What happens next Do not shop using last month’s commission check as monthly income. Run the [income calculator](/calculators/income/) with a conservative average, then talk with a loan officer about which average the investor will accept for your product. That conversation is not an approval. ## Common questions ### If last year was a down year, can we skip it? ### Is commission-only harder than W-2 plus commission? ## Keep going [Mortgages when your income is not the same every month How lenders typically average overtime, 1099, commission, and self-employed income, what documents to gather, and when a bank-statement or Non-QM option is even in the conversation.](/learn/variable-income/)[Can I Get a Mortgage If My Income Changes Every Month? Yes, if you can document a pattern. Underwriters usually average 12–24 months of variable income rather than last month’s paycheck. Here is what that looks like.](/blog/can-i-get-a-mortgage-if-my-income-changes-every-month/)[Overtime on a W-2: What “Likely to Continue” Means Underwriters usually average overtime over a documented history and ask whether it is likely to continue. A strong month is not a qualifying method.](/blog/w2-overtime-likely-to-continue/)[Gig Plus W-2 Mix: How the Average Is Built Gig or 1099 income and W-2 wages are usually averaged as separate streams, then added. A peak gig month does not cover an undocumented W-2, and the reverse.](/blog/gig-plus-w2-income-mortgage-average/)[Conventional loans in Utah Conforming conventional purchase and refinance, PMI, and typical documentation.](/loans/conventional/)[Required income calculator Work backward from a target price to an illustrative income need.](/calculators/income/) ## What to do next Education first. A conversation with a loan officer is how you find out what may actually fit your file. [Talk through a commission file](/qualify/)[Conventional loans in Utah](/loans/conventional/)[Required income calculator](/calculators/income/) Loan information is provided by Ondo Real Estate (NMLS ID on file). This is not a commitment to lend, a loan approval, or an offer of credit. Rates, terms, and payments shown are estimates for illustration only, are not a quote, and are subject to credit approval, underwriting, and market conditions. You are not required to use Ondo for financing to buy or sell with Ondo. Equal Housing Lender. Program rules, fees, and county loan limits change. Confirm the current published schedule and lender overlays. Nothing here is a quote, a lock, or a credit decision. [Licensing and disclosures](/licensing/)