Steady salary for 5 years, moving to 100% commission now. How will this effect getting a loan for my first home?

It makes it MUCH more difficult for you to obtain loan approval. Virtually all mortgage programs require the lender to establish a history for borrowers receiving bonus or commission or OT income, usually for two years. This is the same reason it is difficult someone starting a business to obtain a mortgage. The only exception is when the amount of commission income is guaranteed. So, if your employer is willing to establish a base or guaranteed income, even if is a draw against future commissions, that may be enough to document income - but normally that does not seem to be the case. Previous advice that you NOT change to commission until after you have closed on your home is exactly correct!!! - Even if your new commission structure has not actually started yet, the mortgage lender is going to contact your employer. If they are told your income structure has changed, your application is likely dead.

You need to purchase your home before you switch to commissions.. I recently had a borrower with a 14 year job, and 1 year ago, the company switched from salary plus commissions on a W2, to 100% commissions on a 1099. He had 1 year 1099 income and his Debt to income ratio was 22%. He was putting 25% down on a $400K home, and had $250K in reserves after putting $100K down, and we could not find a lender willing to allow this scenario, even though there were provisions for an exception if he had 1 year 1099. No one would do it.. Portfolio or conforming.. so understand your scenario would be even tougher if your just switching.. you will not be able to finance a home until you have 2 years filed federal tax returns.. period.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

You will not be able to get a loan for 2+ years. Even if you are in the same job and it is just a change in pay structure. You will need to prove 2 years of consistent earning. A lender may take one year, but that is doubtful.

Yes,because commission income is inconsistent we must take a two year average to determine an average monthly income, even if it is in the same line of work. However, there are some non-conforming lenders coming back into the mortgage arena that may go outside the Fannie/Freddie guides but, you will pay a price

If at all possible, delay pay structure change until your purchase is completed.

the answer will depend on if the commission will be 1099 or w2.

A portfolio lender will generally take a look at in a year.