Quick answer: On a $780,000 Wheat Ridge 80033 home with 20% down at 7.18%, principal and interest is about $4,227 a month. Fannie Mae recommends two years of history for overtime, bonus and commission pay, accepts 12 to 23 months when other positives offset it, and averages stable pay over at least 12 months.
By Katerina Veteskova, Colorado real estate broker license FA.100082955, eXp Realty, LLC
Buyers in Wheat Ridge whose paychecks include overtime, bonuses or commission often ask me how much of that extra pay a lender will actually count. The answer comes from how long you have earned it and which way it is trending, so this guide runs one clear example.
The example is a $780,000 purchase in the 80033 zipcode with 20% down, or $156,000, and a $624,000 30-year fixed loan.
What counts as overtime, bonus or commission pay when I apply in Wheat Ridge?
Pay that rises and falls from one paycheck to the next, in addition to a base salary or hourly wage.
The Fannie Mae Selling Guide covers bonus, commission, overtime and tips in a single topic. Your lender verifies it with a completed Request for Verification of Employment, or with your latest paystub and two years of W-2s, plus a verbal check with your employer.
How much is principal and interest on this $624,000 loan at 7.18%?
Roughly $4,227 each month for principal and interest.
I priced the loan at the Freddie Mac 30-year fixed average of 7.18% as of November 5, 2026, down from 7.24% a week earlier. A $624,000 balance is below Jefferson County's $862,500 one-unit conforming limit in the FHFA 2026 county file, so this is a conforming loan, not a jumbo.
How many months of overtime or bonus history does a lender want?
Two years is the recommended history, and 12 months is the floor.
Fannie Mae allows pay received for 12 to 23 months when positive factors in your file reasonably offset the shorter record. The Guide's allowance for a shorter record stops at 12 months. Read the employment standards for how lenders judge whether current work is likely to continue.
How does a lender turn variable pay into a monthly number?
It averages what you earned, and it never counts a single strong month.
For stable or rising pay, the lender adds year-to-date earnings to the previous year's earnings and divides by the months covered, using at least 12 months. Take $24,000 of overtime last year and $22,000 over the first 10 months of this year. That is $46,000 over 22 months, or about $2,091 a month. These two amounts are my illustration, not Wheat Ridge averages.
An annual bonus is divided by 12, so a $12,000 bonus paid once a year counts as $1,000 a month.
Email me Wheat Ridge listings from $700,000
Email me new Wheat Ridge listings from $700,000 as they come on the market, so I can match my variable pay record to a price range before I write an offer.
What if my overtime or commission pay has dropped this year?
A drop changes the math, and the lender must see that the new level has leveled off.
For decreasing pay, Fannie Mae requires the lender to confirm the current level has stabilized. If it has, the monthly figure is year-to-date pay divided by the months since it stabilized. If it has not, that pay is not eligible. A documented one-time event outside your control that briefly stopped your earnings may be left out of the calculation.
Expect the lender to count the full average if:
- You have two years of overtime, bonus or commission history
- This year's pay is level with or above last year's
- Your paystub and W-2s show the same amounts you quote
Expect more questions from the lender if:
- You have between 12 and 23 months of history
- The pay fell this year and has not leveled off
- Your paystub shows an amount your W-2s cannot support
Which Wheat Ridge and nearby searches fit a $780,000 purchase?
Start in Wheat Ridge with Wheat Ridge homes from $700K, Wheat Ridge 80033 homes from $700K and Wheat Ridge $700K to $1M, then add Wheat Ridge homes from $1,200,000 and Wheat Ridge 4+ bedroom homes from $700K to stretch the range.
Next door, compare Lakewood homes from $700K, Lakewood 80226 homes from $700K and Lakewood $700K to $1M, then Edgewater homes from $700K, Edgewater 80214 homes from $700K and Edgewater $700K to $1M. Further out, open Golden homes from $700K, Arvada homes from $700K and Jefferson County 4+ bedroom homes from $700K. If this is your first purchase, read first home in Jefferson County, and compare the wider metro through Front Range $700K to $1M.
Broker view: "When a buyer's pay includes overtime or commission, I ask for the last two years of W-2s and the latest paystub before we talk price. I would rather size the offer on the average a lender will count than on one strong recent month." - Katerina Veteskova, eXp Realty, LLC
What this guide does not cover: self-employment pay, tip pay, base salary rules, debt ratio limits, FHA and VA variable pay rules, lender overlays beyond the Selling Guide, and Wheat Ridge property tax or insurance dollar amounts. This is not financial advice, and your lender decides which pay counts on your file.
Sources: Freddie Mac PMMS 30-year fixed, 7.18% as of November 5, 2026 (the week-earlier figure sits in the payment section). Fannie Mae Selling Guide B3-3.3-02 (bonus, commission, overtime and tip pay, dated March 4, 2026) and B3-3.2-02 (employment standards), checked November 9, 2026. FHFA's 2026 county limit file, Jefferson County row. Monthly P&I and the averaging examples are my arithmetic on example amounts, for illustration only.
Planning a Wheat Ridge purchase near $780,000? Call or text 720-646-4685, or request a tour.
Frequently asked questions
How long a history of overtime or bonus pay does a lender want in Wheat Ridge?
Fannie Mae recommends a minimum two-year history. Pay received for a shorter period, but no less than 12 months, may be acceptable if there are positive factors that reasonably offset the shorter history. Your lender decides whether those factors are present.
How does a lender turn bonus or commission pay into a monthly number?
For stable or increasing pay, the lender averages year-to-date earnings and the previous year's earnings over the months included, using at least 12 months. An annual bonus is divided by 12, so a $12,000 bonus counts as $1,000 a month.
What if my overtime or commission pay has dropped this year?
Fannie Mae says decreasing pay can only be used once the lender confirms the current level has stabilized after the decline. The monthly amount is then year-to-date pay divided by the months since it stabilized. If it has not stabilized, it is not eligible for qualifying.
What documents does a lender use to verify variable pay?
The lender needs either a completed Request for Verification of Employment (Form 1005) or your most recent paystub plus two years of W-2s. Fannie Mae also requires a verbal verification of employment.
Katerina Veteskova is a Colorado real estate broker (license FA.100082955) with eXp Realty, LLC. Call or text 720-646-4685, or request a tour.