Types of Income That Qualify for a Mortgage in Washington State

Retirement Income, Asset Income, Social Security InHow much you earn matters when you’re buying or refinancing a home — but so does how you earn it. Lenders treat a W-2 salary differently than commission income, self-employment income, rental income, or retirement income. Each has its own documentation rules and understanding them before you apply can save you real time and surprises.

This guide is your starting point — jump to the income type that matches your situation or read through all of them if your income comes from more than one source.

Jump to an income type

Salary, hourly & variable income

If you’re a W-2 employee — salaried, hourly, part-time, working a second job, earning tips, or on active duty — this is where lenders start. Fannie Mae and Freddie Mac both made significant updates to how this income is documented and calculated in 2026, including new rules for income that starts after your closing date.

Read: How Lenders Qualify Salary, Hourly, and Variable Income

Bonus, overtime & commission income

Bonus, overtime, and commission income can absolutely be used to qualify — but lenders need to see a consistent history and evidence it’s likely to continue before they’ll count it.

Read: How Bonus, Overtime & Commission Income Affect a Mortgage

RSU & stock compensation income

If part of your compensation comes from restricted stock units, stock options, or an ESPP, there’s a specific way lenders calculate that income — and it recently changed under new Freddie Mac guidelines.

Read: How RSU Income Is Qualified for a Mortgage

Self-employed & 1099 income

Self-employment income is documented differently than W-2 income, and there’s a wider range of loan options available if your tax returns don’t tell the full story — including bank statement loans and other non-QM options. This also covers gig and platform income (rideshare, delivery, and similar apps).

Read: How Self-Employed Income Is Qualified for a Mortgage

Read: Self-Employed Mortgage Options in Washington State (full program comparison)

Rental income

Whether you’re buying a new investment property, refinancing one you already own, or planning to convert your current home into a rental while you buy your next one, rental income has its own set of rules — including the 75% qualifying factor and program-by-program differences.

Read: How Rental Income Is Calculated When Qualifying for a Mortgage

Read: Converting Your Home to a Rental While Buying in Washington State

Retirement, Social Security, disability, assets & other income

Not all qualifying income comes from a job. Retirement and pension income, Social Security, disability, alimony, child support, and investment or trust income can all be used to qualify — each with its own documentation path.

Read: Retirement, Social Security, Disability, Assets & Other Income: What Counts Toward Your Mortgage

Boarder & roommate income

If you have a roommate or lodger paying you documented rent, that income may be usable toward qualifying under Fannie Mae’s HomeReady and Freddie Mac’s Home Possible programs.

Read: Using Roommate or Boarder Income to Qualify for a Mortgage

The bottom line on income documentation

Every income type above comes down to the same three questions: is it documented, is it consistent, and is it likely to continue? Whether you’re buying, refinancing, or pulling cash out of a home you already own, it’s worth understanding your income picture before you apply.

Read: Washington State Homebuyer’s Guide · Mortgage Refinance Guide

Have a complex income picture?

Many borrowers have income from more than one source on this list — a salary plus rental income, self-employment plus investment distributions, retirement income plus a part-time job. I’m happy to walk through your specific situation and help you understand what will count and how, whether you’re buying or refinancing.

Let’s talk · Get a rate quote

Rhonda Porter · Licensed Mortgage Advisor · NMLS #121324 · Washington State

Last reviewed: August 2026