Commission and DTI ratios

[Nicole Smith]

My husband makes a small amount of commission from his job. It gets paid out quarterly (March, June, Sept and December). Our LO asked for his YTD commission which is $0 because he won't get paid out until late March. The most recent we have is December which is for $1500 and shows $6000 for 2015. She has $500 a month as his commission counted towards his income and we can't have that lowered any or else we won't qualify. We recieved a letter from his company stating that they expect him to meet or exceed last years commission but she still wants to see March when we have it. Our loan is currently in processing and we have to close by April 8th. 

The problem is that his commission for this quarter is not going to be $1500.....it will be more like $875. The reason being that the March commission is for Dec, Jan and Feb which are notoriously slow months for insurance sales. The summer months are  much busier which results in higher commission. My question is.....if we submit the new commission of $875 for this quarter are they going to adjust our monthly commission to $291 instead of $500? We will be denied for the loan if they do that.