Kinfolk Home Loans: How to Get a Mortgage with Commission Income

The dream of homeownership is universal, but for those who rely on commission-based income, securing a mortgage can feel like an uphill battle. Traditional lenders often favor steady paychecks, leaving freelancers, real estate agents, sales professionals, and gig economy workers struggling to qualify. Kinfolk Home Loans, however, specializes in helping non-traditional borrowers turn their homeownership dreams into reality.

Why Commission-Based Borrowers Face Challenges

The Volatility of Commission Income

Lenders prefer predictability. A W-2 employee with a consistent salary presents less risk than someone whose income fluctuates month to month. Commission-based earners may have high annual earnings, but if their income varies significantly, underwriters may hesitate.

Documentation Hurdles

Traditional mortgages require two years of tax returns, pay stubs, and employment verification. For commission earners, tax returns might show deductions that reduce taxable income, making it seem lower than actual take-home pay. Some lenders may not fully understand how to assess non-traditional income streams.

Credit and Debt-to-Income (DTI) Considerations

Even with strong earnings, high debt or a less-than-perfect credit score can complicate approval. Commission-based borrowers must often work harder to prove financial stability.

How Kinfolk Home Loans Helps

Specialized Underwriting for Non-Traditional Income

Kinfolk Home Loans understands that commission income, while variable, can be reliable. Their underwriters evaluate:
- Two-year income history – Even if earnings fluctuate, consistent performance over time strengthens the case.
- Year-over-year growth – If commissions are increasing, lenders may factor in upward trends.
- Industry stability – Some fields (like real estate or tech sales) have predictable cycles.

Flexible Documentation Options

Instead of relying solely on tax returns, Kinfolk may consider:
- Bank statements – Showing consistent deposits over 12-24 months.
- Client contracts or retainer agreements – Proving future income stability.
- Commission statements – Direct from employers or clients.

Alternative Loan Programs

Kinfolk offers solutions beyond conventional mortgages, including:
- Bank statement loans – Ideal for self-employed borrowers.
- Asset-based approvals – Using liquid assets to supplement income.
- Non-QM loans – For those who don’t fit traditional lending boxes.

Steps to Secure a Mortgage with Commission Income

1. Organize Your Financial Records

Gather:
- Two years of tax returns
- 12-24 months of bank statements
- Commission statements or payment records
- Proof of any additional income (investments, rental income, etc.)

2. Strengthen Your Credit

Aim for:
- FICO score of 680+ (higher improves rates)
- Low credit utilization (below 30%)
- No recent late payments

3. Minimize Debt

Pay down credit cards and loans to improve your DTI ratio. Most lenders prefer a DTI below 43%.

4. Save for a Larger Down Payment

A 20% down payment eliminates private mortgage insurance (PMI) and improves approval odds. Some programs allow as little as 3-5%, but a larger down payment offsets income variability.

5. Work with a Kinfolk Loan Officer

A specialist can:
- Identify the best loan program for your situation.
- Help structure your application to highlight strengths.
- Negotiate with underwriters on your behalf.

Real-Life Success Stories

Case Study: The Freelance Graphic Designer

Income: $90,000 annually (but varied monthly)
Challenge: Tax returns showed deductions, making income appear lower.
Solution: Kinfolk used 12 months of bank statements to verify actual deposits.
Result: Approved for a $400,000 mortgage with a 10% down payment.

Case Study: The Real Estate Agent

Income: $120,000 in commissions (first year in the field)
Challenge: Lack of two-year history.
Solution: Kinfolk considered current contracts and industry benchmarks.
Result: Qualified for a loan with a co-signer and slightly higher rate, refinanced after 12 months.

The Future of Mortgage Lending for Gig Workers

The workforce is changing. More people are freelancing, contracting, or earning through platforms like Uber, Upwork, and Etsy. Traditional lending models must adapt. Kinfolk Home Loans is at the forefront of this shift, recognizing that financial stability isn’t always tied to a W-2.

Emerging Trends

• AI-driven underwriting – Analyzing cash flow patterns instead of just tax returns.
• On-demand income verification – Linking bank accounts for real-time proof of earnings.
• Customized loan products – Tailored for influencers, content creators, and other new-age professionals.

Final Tips for Commission-Based Borrowers

• Keep meticulous records – Track every payment and deposit.
• Separate business and personal accounts – Clean financials simplify underwriting.
• Plan for lean months – Lenders may average income, so consistent savings help.
• Build relationships with lenders – A specialist who understands your industry is invaluable.

Kinfolk Home Loans proves that commission income shouldn’t be a barrier to homeownership. With the right preparation and the right lender, your dream home is within reach.