How To Get A VA Loan When You Work On Commission

If you earn commission instead of a steady salary, qualifying for a VA loan is still possible. Lenders treat commission income differently because it can swing up and down from year to year. The good news is there are clear rules and practical ways to present your income so underwriters can approve your VA home loan.

Table of Contents

• What lenders want to see
• Does it need to be two years with the same employer?
• Common scenarios and how they’re handled
• Why underwriters sometimes disagree
• Documentation you should gather
• Practical tips to improve your chances
• Final takeaway
• FAQ

What lenders want to see

The core principle is stability. Lenders want to know your income is reliable enough to support a mortgage. For commission-based pay, that usually means a two-year history of earning commission. Lenders take those two years and calculate an average to determine how much of your commission they can use for qualifying.

That two-year rule is not unique to VA loans. It applies broadly across mortgage types because commission income can be volatile. By averaging two years you show an underwriter whether your earnings are consistently high, steadily rising, or erratic.

Does it need to be two years with the same employer?

No, the two-year period does not have to be with the same employer. What matters is whether your work is similar employment. If your roles are comparable and you’re still doing the same type of sales work, underwriters will often accept the history from different employers.

Be aware there is some gray area here. Underwriters interpret "similar" differently. If you move from one type of sales to another that looks very different on paper, you may get mixed answers from different lenders. For example, going from retail sales to complex B2B account management might require additional documentation or a closer explanation of the job duties.

Common scenarios and how they’re handled

Here are common commission-related situations and how lenders typically treat them:

• 100% commission with two years of steady earnings: Lenders will average the commissions and use that number for qualifying.
• Commission plus base salary: You can use the base salary straightaway. If the base isn’t enough, the lender will average commissions as well to make the numbers work.
• Commission draws: Draws (a guaranteed periodic payment to cover commission fluctuations) are acceptable when documented. They help stabilize your qualifying income.
• Changing jobs within the same sales field: Often acceptable as long as job duties and income potential remain similar. Be prepared to document responsibilities and earnings.

Why underwriters sometimes disagree

Underwriting is a mix of rules and judgment. Two underwriters reviewing the same file can reach different conclusions about whether two jobs are similar enough. That’s normal. It usually comes down to how clearly your earnings and job duties are documented and whether the lender is conservative or flexible.

When you plan your application, anticipate this variability. Work with a loan officer who understands commission income and can explain your situation clearly. If one lender says no, another might approve the loan with the same paperwork.

Documentation you should gather

The stronger your paper trail, the smoother the approval. Collect these items early:

• Two years of tax returns (Form 1040) and W2s if applicable.
• Year-to-date pay stubs showing commissions or draws.
• Profit and loss statements if you’re self-employed or run your own sales business.
• Employment verification letters explaining job duties and whether your pay is commission, salary, or draw-based.
• Documentation of large commissions or bonuses and an explanation if income swings significantly year-to-year.

Practical tips to improve your chances

1. Keep clean records. Well-organized tax returns and consistent stubs make it easier to average commission income and reduce questions from underwriters.
2. Explain job changes. When switching employers, provide a clear description that shows how the new role is similar to the old one.
3. Use base pay or draws when available. Even a modest base salary can stabilize your qualifying income and reduce reliance on a commission average.
4. Shop lenders if needed. Some lenders specialize in nontraditional income and are more comfortable handling commission scenarios.
5. Plan timing. If you’ve only been at a new sales job a few months and your commissions haven’t stabilized, you might wait until you have at least a year of verifiable income.

Final takeaway

You can qualify for a VA loan on commission income. The standard expectation is a two-year history that underwriters can average. Employment across different companies is acceptable if the roles are similar, but be ready for differing opinions among underwriters. Base pay and commission draws are both useful for stabilizing income and improving your chances of approval.

Present your documentation clearly, explain any job changes, and work with a loan officer who knows how to package commission income. With the right preparation, a commission-based pay structure does not disqualify you from a VA home loan.

FAQ

Can I get a VA loan on 100% commission?

Yes. Lenders typically require a two-year history of commission income and will average those earnings to determine qualifying income. Consistency over that period is what matters.

Do those two years need to be with the same employer?

No. The two-year history can span multiple employers as long as the jobs are similar in nature. Expect closer scrutiny if the roles look different on paper.

What counts as "similar employment"?

Similar employment means your duties, income structure, and sales type are comparable. Moving from car sales to another car dealership is clearly similar. Moving from field sales to an unrelated sales role may require extra documentation and explanation.

Can I use base salary or draws to qualify?

Yes. Base salary and commission draws are acceptable and can help stabilize your qualifying income. Lenders will include these when calculating your total qualifying income.

What if different underwriters give different answers?

Underwriters exercise judgment, so opinions can vary. If one lender declines or asks for more documentation, try another lender or prepare additional explanations and proof to clarify your income story.

If you want help preparing your documents or discussing how your specific commission situation will be treated, reach out to a loan officer experienced with VA cases and commission income.