Home Buying in New York>Question Details

CJ, Renter in Haddonfield, NJ

I am a dentist earning income on a commission basis. Am I eligible for a home loan?

Asked by CJ, Haddonfield, NJ Wed Aug 14, 2013

I have 2 years of working history as a resident and 1 year working history as a practicing dentist. I started on a per diem basis from August 2012 - January 2013. I have switched to commission since February 2013. I am a W-2 employee. Will the short working history for commission based income stop me from getting a loan?

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23
This is a question for your lender. You should be able to secure a loan since you are in the same industry and you have that work experience. Something to consider is a loan designed specifically for doctors. Ask your lender if they offer this program.
0 votes Thank Flag Link Wed Nov 5, 2014
As far as I know you should be able to with a steady income. Even if it is a little new. I think you should contact a lender like your bank or a broker and figure out. That is the only way really to take care of it. http://www.cornerstonedentalpa.com/template.jsp?doc=cornerst…
0 votes Thank Flag Link Tue Nov 4, 2014
As far as I know you should be able to with a steady income. Even if it is a little new. I think you should contact a lender like your bank or a broker and figure out. That is the only way really to take care of it. http://www.cornerstonedentalpa.com/template.jsp?doc=cornerst…
0 votes Thank Flag Link Tue Nov 4, 2014
Hello CJ,

How are you? I hope all is well.

If you're still looking to purchase a home, feel free to reach out to me as I would be glad to assist you in your search.

Looking forward,

Christine Gordon
Licensed Real Estate Broker
Gorick Realty, Inc.
Cell: 917.881.2924
Fax: 347.328.9352
View listings at http://www.gorickrealty.com
"Home is where the heart is."
0 votes Thank Flag Link Fri Oct 3, 2014
The best thing you can do to find out if you can qualify for a home is call a professional mortage broker and find out what you qualify for. Being a dentist I would assume you earn a good income and should have no problem quailifying for a loan. Thank call an awesome agent an start your home search!
0 votes Thank Flag Link Thu Oct 2, 2014
It's possible. It's a matter of running the numbers and seeing if your commission income along with the previous history gives you enough to qualify. Typically, lenders are looking for a 2 year average on commission income. If you have just a couple months, I can't imagine it being enough to help you qualify. There are other factors that come into play. I suggest you meet with a Loan Officer and see what they come up with once they review all the necessary documentation.

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
ACADEMY MORTGAGE CORP
105 Conklin Street
Farmingdale, NY 11735
jmeneses@bankamc.com
(516) 606-9648 Cell
(631) 227-3258 Office
(516) 249-1606 Fax
0 votes Thank Flag Link Thu Jul 3, 2014
Hey CJ, you're moving from New Jersey... to a NASCAR paced market in New York. I happen to have a great Mortgage Banker who closes my deals and she works at the Federal Savings Bank. She waves a checkered flag.
0 votes Thank Flag Link Wed Jun 4, 2014
From what I have seen mortgage brokers will average the last 2-3 years income for this case to figure out what you can afford on your loan.
That would be 2-3 years with the same Full time position etc. For this case it's a bit more complicated as you have a short history working on this basis.
Speak to a few mortgage brokers to see what they say on this scenario. Hopefully they can combine both to qualify.

Regards,

Phil
0 votes Thank Flag Link Wed Jun 4, 2014
I agree. It may be a bit more complicated to get a loan than it would be if you had been a dentist for the past few years, but it won't be impossible. Contact a few different brokers to see how much of a loan you can get. Since your current income changed when you became a dentist, and ended your residency, they will probably take that into account. http://www.sunridgelandingdentalcare.com/services.html
Flag Thu Aug 21, 2014
Check in with a reputable mortgage broker. There are a lot of commissioned professionals who get mortgages. The experts can answer all your questions.
0 votes Thank Flag Link Tue Dec 17, 2013
I'm curious, I might have to talk to my dentist in Hamilton about this.
0 votes Thank Flag Link Thu Dec 5, 2013
Yes. It will depend on what the #s are. It's best to meet face-to-face with a Loan Officer and allow him/her to review all the necessary documentation and then determine exactly where you stand. I am always available to meet if you're in need of a reliable Loan Officer. Feel free to call or email me anytime. Good luck!

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648 Cell
(516) 740-4478 Office
(516) 918-5383 Fax
0 votes Thank Flag Link Fri Nov 15, 2013
It depends on your income and your taxes for the 2 last tax years. You need to speak to a loan officer about it.
0 votes Thank Flag Link Fri Nov 1, 2013
Please consult with a local mortgage broker or two to get a straight answer to your questions. Your situation leaves no room for guess-work; get a phone or personal meeting with an expert.
0 votes Thank Flag Link Fri Nov 1, 2013
Commission based income should not stop you from getting a loan as long as you can provide your credit history, proof of income, or any other documents that will serve as proof for your capacity and willingness to pay a mortgage.




-----
Dana Lindberg
CFS Mortgage - http://www.cfs203k.com
0 votes Thank Flag Link Fri Nov 1, 2013
It depends on your income and your taxes for the 2 last tax years. Make sure to speak to a loan officer about it.
Web Reference: http://ralhandentistry.ca
0 votes Thank Flag Link Wed Oct 30, 2013
Cj,

How long have you been a dentist making commission. I myself as a realtor make wages solely on commission and I myself qualify for a home loan. The minimum requirements is that you can show 2 years of proof of income from that source and make sure that your tax returns are filed properly. If you have any other questions I know a great mortgage officer that originates many loans for agents that solely make wages on commissions. His name is Mark Fisher with United Northern Bankers look him up.



Sincerely, 
Antonio Sanchez
Exit Realty Search
Licensed Real Estate Salesperson
3928 E. Tremont Avenue
CELL: 347-320-0673
FAX:    347-202-4966

antonio@exitrealtysearch.com
http://www.lovingmytown.com

"RENTAL EXPERT"
"FIRST TIME HOME BUYERS"
"VA LOANS"
"203K LOANS"
"SHORT SALES"
"LISTING AGENT"
0 votes Thank Flag Link Wed Oct 23, 2013
Please contact me for assistance. My name is John and I can be reached at 212-714-1027 ext 16. Thank you and good luck.
0 votes Thank Flag Link Tue Aug 20, 2013
A good mortgage broker or loan officer should be able to give you the details.



Check if you qualify for a mortgage. Try http://www.whywaitbuytoday.com
0 votes Thank Flag Link Sun Aug 18, 2013
Tony gave you specific and accurate advice. You should also consider finding a lender in your area to work with. They will help you understand what you are eligible for now and also set goals so that you know where you are, and how to get to where you want to be. They are the professionals that can let you know all of your options.

Good luck!
0 votes Thank Flag Link Thu Aug 15, 2013
There are other factors involved that will determine qualification, therefore for a personalized answer visit with any licensed loan officer; be aware that a pre-approval letter is necessary in order to determine your price range and for any offers to be taken seriously.
0 votes Thank Flag Link Thu Aug 15, 2013
Hi CJ

Yes you are going to have a difficult time obtaining a loan right now since not only don't you have a 2 year history of commissions, you've only been working for a year. You are going to need at least one full year of commissions to even be considered for a mortgage. Below are Conventional and FHA guidelines, direct from Fannie Mae and FHA's underwriting manuals

Conventional:
A minimum history of 2 years of commission income is recommended; however,
commission income that has been received for 12 to 24 months may be considered
as acceptable income, as long as there are positive factors to reasonably offset the
shorter income history.

If commission income represents 25% or more of the borrower’s total annual
employment income, obtain the following documents:
• copies of the borrower’s signed federal income tax returns that were filed with
the IRS for the past two years; and either
– a completed Form 1005 or Form 1005(S), or
– the borrower’s recent paystub and IRS W-2 forms covering the most recent
two-year period.

FHA:
Commission income must be averaged over the previous two years. To
qualify with commission income, the borrower must provide
· copies of signed tax returns for the last two years, and
· the most recent pay stub.

A borrower whose commission income was received for more than one year,
but less than two years may be considered favorably if the underwriter can
· document the likelihood that the income will continue, and
· soundly rationalize accepting the commission income.
Notes:
· Unreimbursed business expenses must be subtracted from gross income.
· A commissioned borrower is one who receives more than 25% of his/her
annual income from commissions.
0 votes Thank Flag Link Thu Aug 15, 2013
That's unfortunate. Like most dentists, my commission represents 100% of my income. I average a little north of 15K per month. I have all the necessary docs including a 20%, great credit score, etc. I guess my only option would be to seek the counsel of smaller lenders or credit unions and then hope for the best. Thanks. I believe your reply most accurate.
Flag Thu Aug 15, 2013
CJ, comission income is allowed. Lenders will average it out over the past 2 years. But because, if I understand you correctly, you've only been earning comission since last year? So it's a matter of you allowing a Loan Office review all the necessary documents and see just how much you'll qualify for.

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648 Cell
(516) 740-4478 Office
(516) 918-5383 Fax
0 votes Thank Flag Link Thu Aug 15, 2013
CJ, I wok with a number of banks and mortgage brokers who lend to professionals like yourself, working on a commission basis. It is of course important what you are making, on average. You can have a CPA write a letter stating your projected annual income. Give me a call or send me an email, I can put you in touch with mortgage brokers who can help you.

Sincerely,

Alajuwon J Aleem
City Solutions Real Estate
(646) 915-5979 alajuwon@citysolutions.com
0 votes Thank Flag Link Wed Aug 14, 2013
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