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How do lenders count bonus, RSU, and self-employment income?

Lenders want income that's stable and likely to continue, so variable pay gets scrutinized. For bonuses and commissions, lenders typically average the last two years and require a history showing the income is consistent — a one-time bonus usually won't count. RSU income can be used by some lenders if you have a vesting track record (often two years) and the company's stock isn't wildly volatile, but many lenders apply discounts or exclude it. For self-employment, lenders generally average two years of net income from your tax returns, after deductions — which means the write-offs that lower your tax bill also lower your qualifying income. Declining self-employment income may not be averaged at all. To strengthen your file, keep clean documentation, minimize aggressive deductions in the years before applying, and work with a lender experienced in your income type. Self-employed? See wealthserene.com/tools/self-employed-hub.

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