Origination ActivitiesQuestion 247 of 400
A borrower earns a $3,000 monthly bonus that has been consistent for three years and is likely to continue. How may an underwriter treat this bonus income?
a.It may be counted as qualifying income if documented as stable and likely to continue
b.It can never be used because bonuses are variable
c.It doubles the borrower's qualifying income automatically
d.It only counts toward assets, not income
Explanation
Variable income such as bonuses, overtime, or commissions can be counted as qualifying income when it is documented over an adequate history (commonly about two years) and shown to be stable and likely to continue. It is not automatically excluded or double-counted.
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