Real estate agent mortgage in Arizona: qualify on your commissions, not your write-offs.
Mike Certo · Cornerstone First Mortgage · NMLS #260555 ·
You sell homes for a living, but getting your own can feel backward. Your commission income is real and often strong. The catch is that the write-offs that cut your tax bill also cut the income a conventional lender will count. We close that gap by reading your deposits instead of leaning on your returns alone.
Why does my Schedule C work against me as an agent?
Because conventional and FHA lenders qualify you on your net income after deductions, not your gross commissions. You write off mileage, your car, marketing, MLS dues, staging, and a home office. Smart at tax time. Painful at mortgage time. We start with conventional anyway, since it costs the least, and only move you to another path when your filed net income comes up short.
Here is the math agents run into. Say you grossed $200,000 in commissions and deducted $90,000 in real business expenses. Your Schedule C nets $110,000. A conventional lender uses the $110,000. But if your deductions were heavier and your net landed at $55,000, that same lender now reads roughly $4,583 a month. Your buying power just got cut in half on paper, even though your bank account never saw that drop.
Commission income adds a second wrinkle: it swings. One agent closes nine deals in spring and two in fall. Another lands a single $2M listing that carries the year. Conventional underwriting wants a steady two-year average and gets nervous when year two dips below year one. We know commission income is lumpy, so we build the file around your real pattern instead of forcing it into a salaried mold.
Bank statement, 1099-only, or P&L: which path fits an agent?
The right path depends on how your commissions hit your accounts and what your tax returns show. We check conventional first. When write-offs make that path too tight, we pick from three documentation routes. Here is how we decide.
| Path | Best for the agent who… | What we read |
|---|---|---|
| Conventional / FHA | Has strong net income after deductions | 2 years of returns and 1099s |
| Bank statement loan | Spreads income across brokerages, referrals, and side closings | 12 to 24 months of deposits, expense factor applied |
| 1099-only loan | Gets a clean 1099 from one brokerage | 1 to 2 years of 1099s, no bank statements |
| P&L-only loan | Has a CPA who tracks the books closely | CPA-prepared profit-and-loss statement |
Most agents land on the bank statement loan because their income arrives from more than one source. A 1099-only loan is simpler when your brokerage cuts you one clean form and you do not want to hand over a year of statements. The P&L route fits the agent whose CPA already keeps tight books. We run the numbers on each and tell you which one qualifies you for the most.
How do you document my brokerage and commission deposits?
We trace your commissions from the closing table to your bank account. On a bank statement loan, we pull 12 or 24 months of your business or personal statements and total the deposits that came from your real estate work. Then we apply your expense factor. The result is your qualifying income, and it usually beats your write-off-reduced Schedule C net.
Commission deposits can look messy, so we sort them carefully. We separate brokerage commission checks from transfers, refunds, and personal money moving between your own accounts, because lenders only count true business revenue. Title-company wires, brokerage ACH deposits, and referral checks all count. A transfer from your savings does not. If you run commissions through an LLC or an S-corp, we know how to read those accounts too. Want the deep version? Our bank statement loan page walks through exactly what we accept.
How do you handle a slow quarter or seasonal commissions?
We average across enough months to smooth out the swings. A 12-month bank statement view catches a slow winter and a busy spring in one number. A 24-month view smooths an even bumpier year. We pick the window that reflects your true earning power, so one quiet stretch does not sink your file the way it might at a bank that only reads a single year of tax returns.
Reserves matter more for commission earners, and that is a good thing for you. Lenders want to see a cushion in the bank after closing, usually a few months of housing payments, in case a closing slips. We treat those reserves as proof of strength, not a hurdle. Agents who park a portion of each commission check into savings tend to sail through this part. If your reserves are light right now, we will tell you the target number and how to get there before you apply.
How do we actually structure your loan?
We start with a real conversation about your last two years of commissions, your write-offs, and your goals. Then we model the conventional path first, because it is the cheapest option when your net income supports it. If the numbers fall short there, we test the bank statement, 1099-only, and P&L routes side by side and show you the qualifying income each one produces.
From there we lock in the details: down payment, reserves, and the documentation list for your chosen path. Plan on roughly 10% to 20% down on the non-QM commission programs, a 620 or higher credit score for most files, and a 660 or higher score for bank statement and 1099-only loans. We hand you a clear checklist so you are not guessing what to gather.
One honest note. If your numbers are not there yet, we will say so and tell you what to change and when to come back. Sometimes the right move is waiting one tax cycle or adjusting how you bank your commissions. See our 1099-only loan and P&L-only loan pages for the documentation details, and reach out when you want a straight read on where you stand.
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Real Estate Agent Mortgage Arizona — Frequently Asked Questions
Can a real estate agent get a mortgage?
Yes. We finance real estate agents in Arizona every month. If your tax returns show strong net income, a conventional loan is usually the first option we check, and it carries the lowest cost. If write-offs have shrunk your taxable income, we qualify you on your actual commission deposits through a bank statement loan, on a clean 1099, or on a CPA profit-and-loss statement instead.
Do realtors need tax returns to qualify?
Not always. Conventional and FHA loans do require two years of returns, and when your net income supports the payment we recommend that path first because it costs the least. When your Schedule C write-offs pull your taxable income too low, we use a bank statement loan, a 1099-only loan, or a CPA-prepared profit-and-loss statement. Those programs read your real cash flow instead of your filed net income.
Should an agent use a bank statement or 1099 loan?
It depends on where your commissions land. If your brokerage pays you on a 1099 and your gross figure is clean, a 1099-only loan skips bank statements and is the simplest path. If you split income across brokerages, referral fees, and side closings, a bank statement loan that reads 12 to 24 months of deposits usually captures more income. We compare both and use whichever qualifies you for more.
What credit score do real estate agents need?
Plan on a 620 or higher credit score for FHA and most conventional commission-income loans, and a 660 or higher score for the bank statement and 1099-only programs. A stronger score lowers your down payment and improves your terms. We will pull your file, tell you exactly where you stand, and map the credit moves that open up better options before you apply.