The Quick Read: The lender counts the pay it can prove with third-party records, not the pay on your offer letter. Salary usually counts first. Bonus and commission count only with a documented history, and they are averaged. Pay promised by a new employer that has no track record often counts for little or nothing. Relocation changes which documents apply, so plan the paper trail before you sign a contract.
Key Takeaways
- Fixed salary is the easiest income to count. Bonus, commission and overtime need a history and an averaging calculation.
- A move to a new employer can reset the clock on variable pay. A move within the same employer usually keeps the history intact.
- Stock that has not vested, relocation lump sums and sign-on money are often treated differently from income. Ask early.
- Jumbo files are underwritten to the individual lender’s guidelines, so the exact rules vary by lender and by file.
- The employer’s verification, a reachable HR contact and a clean paystub trail decide more relocation files than the loan program does.
What Makes a Loan “Jumbo” and Why It Changes the Paper Trail
A jumbo loan starts one dollar above the county’s conforming limit. That limit changes every year and varies by county, so check yours rather than assuming a national figure. Past that line, no agency standard governs the file. The lender sets its own guidelines and reviews more of the file by hand.
Jumbo payment estimate
The starting figures are an example price in the jumbo range with ten percent down on a thirty-year fixed. Replace them with yours.
Editable benchmark: 7.40% as of October 15, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not a jumbo loan quote.
Illustrative starting assumptions: a $1,000,000 price in the jumbo range, ten percent down on the top-leverage lane, a thirty-year fixed structure at the current Freddie Mac conforming benchmark, and property taxes and insurance estimated at typical national rates. Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conforming benchmark, a market reference and not a jumbo loan quote; jumbo rates are set by the lender and the lane at lock and differ from the conforming benchmark. An adjustable-rate scenario is shown at the benchmark for the whole term; the rate after the initial period is unknown. Reserve months and appraisal counts follow the lane sheet for the amount band; the automated finding may require more. Taxes, insurance and dues are editable estimates; closing costs are not included. On most lanes the conforming limit for the county decides whether a loan is jumbo at all; two lanes start at a stated dollar floor instead. Licensed in sixteen states for consumer mortgages.
Across the wholesale programs Lendmire places files with, the envelope looks like this. The headline lane starts at a 660 decision score. Leverage reaches 90% on that lane, and several lanes reach 89.99% combined loan-to-value while the rest stop at 80%. The largest lanes go to $5,000,000. The fixed lanes allow a 50% ratio ceiling, while the adjustable lanes sit at 45% and the interest-only lanes at 43%. Reserves, measured in months of the full payment, rise with the loan amount. Larger loans may also require two appraisals above a lane’s threshold amount. All of this is subject to lender guidelines and full file review, and none of it is a commitment to lend.
Why does that matter for pay documentation? Because the bigger the loan, the more the file depends on how much of your pay counts. Qualifying income can sit well below total compensation. On a jumbo file, that gap can decide whether the loan amount works at all. Lendmire’s jumbo loan programs are built around this reality, and the sections below show how to prepare for it.
How Variable Pay Gets Counted: Step by Step
Underwriters work the same way on most files. They sort the pay, test its history, average it, and verify it with someone other than you.
1. Classify each pay type. Salary is fixed base. Bonus, commission and overtime are variable. Equity grants, sign-on money and relocation payments each get their own treatment.
2. Test the history. Two years of variable pay is the usual preference. The Fannie Mae Selling Guide on bonus, commission, overtime and tip income recommends a two-year history and accepts a shorter one, no less than 12 months, when other positive factors reasonably offset it. Jumbo lenders generally borrow that logic and often tighten it, so treat the agency standard as a floor for your planning, not a promise.
3. Read the trend. Stable or rising pay is averaged across year-to-date and prior-year earnings. Declining pay must be shown to have stabilized, or the lender leaves it out. Income is not averaged over the period of the decline.
4. Average it. The averaged monthly figure, not your last big check, goes into the ratio. An annual bonus is spread over twelve months. A March bonus counts as one-twelfth, not as a large month.
5. Verify it independently. A federal ability-to-repay rule requires lenders to verify the income they rely on with reasonably reliable third-party records. The CFPB’s compliance guide names W-2s and payroll statements as examples. Your word is not enough.
One detail helps borrowers. A lender only has to verify the income it actually uses. If a bonus is thin, the lender can leave it out of qualifying and document only the salary.
Income-Type Table: What Proves It and What Moves With You
| Pay type | What usually proves it | How it is usually counted | The relocation twist |
|---|---|---|---|
| Salary | Offer letter, paystub, employer verification | Stated monthly amount | Counts once the job is documented |
| Bonus | Two years of W-2s, paystub, bonus letter | Averaged over 12 months | New employer’s bonus often not counted |
| Commission | W-2s, tax returns, paystub | Averaged, trend tested | History may not carry to a new plan |
| Overtime | Paystubs, W-2s | Averaged if consistent | Often does not carry to a new role |
| Vested stock | Vesting schedule, brokerage statements | Lender-specific | Old-employer grants stay documented |
| Unvested stock | Grant agreement | Generally not counted | Often lost or reset at a move |
| Sign-on or relocation payment | Offer letter, receipt of funds | Often treated as an asset or one-time | Needs a source document |
Treat the last three rows as questions for your loan officer. The agency guide lists non-vested restricted stock and stock options as ineligible for qualifying income. Jumbo lenders vary on vested stock, so confirm the treatment with each lender directly.
What Changes When You Relocate for a Job
Relocation splits into three cases. Each leads to a different set of documents.
Same employer, new location. The variable-pay history usually continues. The lender runs the analysis on your existing W-2s and current paystub. Expect the lender to confirm that the bonus or commission plan did not change with the transfer. If the plan changes, the lender may analyze the new structure instead. A raise tied to the transfer is its own question. Agency rules allow a future raise on fixed base income only, for a purchase, when it takes effect shortly after closing and the employer confirms it directly. Variable pay is excluded from that treatment.
New employer, same pay structure. The history may not transfer cleanly, because the paystubs and W-2s are from the old company. Lenders often look at whether the new role is comparable and in the same field. A letter from each employer, covering bonus eligibility and payout history, helps the file.
New employer, different structure. This is the hardest case. Salary moving to base plus commission, or to heavy equity, can make the same total pay look like a much smaller borrower. The base counts. The new variable piece has no proof yet.
Whether you have started the job matters most. Under Fannie Mae’s rules on employment offers or contracts, a lender can use a fully executed offer that names the employer, the position, the type and rate of pay, and the start date. If a paystub exists before the loan is delivered, the lender saves it in the file. If none exists, a narrower path applies. It covers only a purchase of a one-unit primary residence, qualifying on fixed-base income only, with a start date that falls between 30 days before and 90 days after the note date. In both cases, the lender uses the monthly amount stated in the offer.
Freddie Mac’s rule for income that starts after closing is tighter on one point. The future income must be non-fluctuating and salaried. Fluctuating hourly pay is not permitted.
The takeaway: a bonus or commission promised by a new employer generally cannot be counted under these agency rules, while the salary can. Jumbo lenders may be stricter. How they treat promised pay varies, so ask the loan officer how a particular lender handles it.
One more limit applies to some files. Agencies bar an offer or contract from a family member or other interested party, so an offer from a relative’s company does not carry the same weight.
Worked Example: One Package, Before and After the Move
The figures below are illustrative percentages, not real pay, and not a statement about any lender’s treatment.
Say a buyer’s total compensation splits into 70% base salary, 20% annual bonus and 10% equity. The buyer has three years at the current employer, with the bonus paid each year at a stable level.
- Before the move. The base counts in full. The bonus counts as an averaged monthly amount. The equity counts only if the lender accepts vested stock and the buyer can document the vesting history.
- After a same-employer transfer. Nothing much changes. The lender confirms the bonus plan is unchanged.
- After a move to a new employer with the same split. Only the 70% base counts at first. The bonus has no history at the new company. The equity grant is unvested and generally does not count.
The buyer’s qualifying income can fall to roughly the base share of total pay, which is 70% in this illustration. If the loan amount was sized on total pay, the ratio can break. The practical fix is to size the purchase on the number the lender can count, then treat any later bonus as cushion.
Checklist by Source
Gathering documents by who supplies them keeps the request clean.
From you:
- Recent paystubs and W-2s for the history period
- Traditional personal-income documentation, such as tax returns, for any commission or heavy bonus income
- Brokerage statements and vesting schedules for stock
- A written explanation for any gap or job change in the last year
From the old employer:
- Verification of employment showing base pay and variable pay history
- A letter on bonus or commission eligibility and payout history
- Equity grant and vesting records
- Documentation of any clawback terms on relocation or sign-on money
From the new employer:
- The fully executed offer letter with title, rate of pay, start date and any guaranteed minimums
- The compensation plan if pay is variable
- A reachable HR or payroll contact for verification
- The first paystub once the job starts
The contact detail matters more than most borrowers expect. A lender must complete a verbal verification of employment before closing. Under Fannie Mae’s verbal verification standard, that check must happen close to the note date, with the exact window set by the guideline. Alternatives such as written verification or an email exchange with the employer’s work address are also allowed. The CFPB’s guide also confirms a lender can document employment by calling the employer, as long as it keeps a record. A new HR department that cannot be reached is a real risk to the file.
Timeline: From Offer to Closing
The order of events matters more than the clock.
1. Before you sign the offer. Ask for the compensation terms in writing. Ask which parts are guaranteed and which are discretionary.
2. At offer acceptance. Start the document request to the old employer. Equity records and bonus letters take the longest to obtain.
3. Between offer and first paystub. Keep the executed offer letter, the start date and the HR contact in one folder. This is the gap where files stall.
4. After the start date. Send the first paystub as soon as it exists. A paystub in the file strengthens a file that was relying on an offer letter.
5. Before closing. Expect a final employment check. A changed offer, a pushed start date or a withdrawn contingency can derail the closing, so tell the loan officer immediately if anything shifts.
Reserves and funds to close need paper too. Relocation payments and sign-on money usually have to be sourced like any other deposit. Document receipt, and keep the payment terms handy in case the lender asks whether repayment is required.
Where the General Rule Breaks
These are the edge cases that surprise relocating borrowers.
- Short history. Under 12 months of variable pay is generally not usable under the agency standard. Between 12 and 24 months it may work with strong offsetting factors.
- Declining pay. Used only if it has stabilized. A new plan that lowers bonus potential triggers more analysis.
- Employment gaps. A gap in the last 12 months requires the lender to analyze whether the current job will continue. Frequent job changes are acceptable if income is consistent and predictable, per the agency’s standards for employment-related income.
- Ownership interest. A 25% or greater stake in the business changes the file to self-employed documentation.
- Equity-heavy pay. For executives paid mostly in stock, qualifying income may end up as base salary alone.
- Occupancy. On the wholesale jumbo lanes, occupancy decides leverage. Primary, second-home and investment occupancy each carry lane-specific limits, so a second home is a different conversation from your primary residence.
If Your History Is Thin
A thin file is not a dead file. It means the lender needs other strengths to offset the gap.
Lower leverage is the first lever. Leverage tops out at 90% on the headline lane, and files with thin pay history often fit better at lower percentages. More reserves, measured in months of the full payment, give a lender comfort when income is unproven. A higher decision score helps, since 660 is where the headline lane starts, not where a thin file is most comfortable. A lower ratio from a smaller purchase, or a down payment that reduces the loan amount, works on both fronts.
Sizing to the base salary is the most dependable plan. It keeps the payment comfortable if bonuses arrive late or smaller than expected.
Alternative paths exist for some files, but they come with their own trade-offs in leverage and documentation. A loan officer can tell you which lane fits before you spend money on an appraisal.
Common Mistakes
- Counting the offer-letter total. Underwriting counts what is fixed and proven, not what is projected.
- Missing vesting records. Stock without a schedule and statements is just a number.
- Unexplained deposits. A large deposit from a sign-on payment looks like borrowed money without paper.
- Waiting to ask the new employer. Verification takes cooperation from people who may not know you yet.
- Assuming conforming rules apply. Jumbo lenders underwrite to their own guidelines. Many borrow the agency framework, but the rules are not identical.
Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit.
Key Terms Defined
Variable pay: Income that changes from period to period, such as bonus, commission, overtime or tips.
Qualifying income: The monthly amount a lender counts when it calculates your debt ratio.
Averaging: Spreading variable income across a set period, usually at least 12 months, to get one monthly figure.
Verification of employment (VOE): A check with your employer confirming you work there and what you earn.
Vesting: The point when a stock grant becomes yours to keep or sell.
Note date: The date you sign the loan’s promissory note at closing.
Frequently Asked Questions
Can I qualify for a jumbo loan if I just changed jobs?
Often, yes, if the new job is documented and the pay is counted properly. A fully executed offer letter and a first paystub support the salary. A recent change matters most when the pay structure shifts to commission or when there is a gap. Each lender sets its own guidelines, and approval depends on the full file.
Does my offer letter’s bonus count toward qualifying?
Usually not at a new employer. Agency rules limit future income to fixed base pay, and jumbo lenders may be at least as strict. The bonus typically counts after you build a documented history.
Is unvested stock counted as income?
Generally not. Vested stock treatment is lender-specific, so ask for a written answer before you rely on it.
How is a relocation payment or sign-on bonus treated?
Typically as an asset or a one-time payment, not as income. You may need a source document showing where the money came from and the terms of the payment.
What if my bonus has been declining?
The lender must confirm the income has stabilized, or it leaves the bonus out. Income is not averaged across the period of the decline. Size the purchase on the amount you can document as steady.
Next Step
If you are buying a home and want to see whether a jumbo loan fits your file, Lendmire can help you compare the options and what each one asks of the file.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage broker licensed for consumer lending in 16 states. Lendmire arranges FHA, VA, conventional and jumbo purchase and refinance loans through wholesale lenders; every file is underwritten by the lender under the applicable program guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Fannie Mae Selling Guide B3-3.3-02: Bonus, Commission, Overtime and Tip Income
2. CFPB Ability-to-Repay and Qualified Mortgage Small Entity Compliance Guide
3. Fannie Mae Selling Guide B3-3.3-03: Employment Offers or Contracts
4. Freddie Mac Guide Section 5303.2
5. Fannie Mae Verbal Verification of Employment (B3-3.1-07)
6. CFPB ATR/QM Small Entity Compliance Guide (Feb 2021)
7. Fannie Mae Selling Guide B3-3.2-02: Standards for Employment-Related Income
This article is part of Lendmire’s jumbo loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How to Match a Jumbo File to the Lane With the Most Leverage · How Many Months of Reserves Does a Jumbo Loan Require? · Is a Jumbo Loan on a Paid-Off Home Priced as a Cash-Out?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.