i. Income from Commissions

Verification

When all or a major portion of the applicant’s income is derived from commissions, obtain the following documentation:

·   Verification of employment or other written verification which provides

-   the actual amount of commissions paid year-to-date

-   the basis for payment (that is, salary plus commission, straight commission, or draws against commission)

-   when commissions are paid (that is, monthly, quarterly, semiannually, or annually), plus

·   individual income tax returns, signed and dated, plus all applicable schedules for the previous 2 years (or additional periods if needed to demonstrate a satisfactory earnings record)

Analysis

Generally, income from commissions is considered stable when the applicant has obtained such income for at least 2 years.

·   Less than 2 years cannot usually be considered stable unless the applicant has had previous related employment and/or extensive specialized training.

·   Less than 1 year can rarely qualify.  In-depth development is required for a conclusion of stable income on less than 1 year cases.