What credit score and down payment are required?

FHA allows 3.5% down with a 580 score, or 10% down with a score of 500-579. Individual lenders may require higher scores.

Can the down payment be a gift?

Yes — your full 3.5% down payment can come from a family member as a documented gift, which helps in many of these situations.

FHA Loan With Overtime and Bonus Income

Wondering about with overtime and bonus income? Here is exactly how the FHA program treats this situation in 2026, with the specific rules and numbers that apply.

The short answer

Overtime and bonus income can be used if you have received it for about two years and it is likely to continue. Lenders average the two years; a sharp decline in the most recent year can cause them to use the lower figure.

What lenders focus on here

Beyond the rule above, an underwriter weighs the whole file — but the factors that matter most in this situation are credit, documentable income, and your debt-to-income ratio.

Income: a documentable two-year average is the core test; keep returns, 1099s, and a year-to-date P&L ready.
Down payment: 3.5% minimum (580+), and gift funds are allowed.
Lender overlays: minimums vary by lender, so comparing several is worth it.

FHA guidelines and lender overlays change. Join the free FHA Notification Program to be alerted when the rules that affect this situation shift.

Your next steps

Pull your credit, gather two years of income documentation, and get pre-approved so you know your real budget. Because lenders set their own overlays on FHA's baseline, comparing two or three is especially important here — one may decline a file another approves.

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Frequently Asked Questions

FHA Loan With Overtime and Bonus Income — is it possible in 2026?: Overtime and bonus income can be used if you have received it for about two years and it is likely to continue. Lenders average the two years; a sharp decline in the most recent year can cause them to use the lower figure.
What credit score and down payment are required?: FHA allows 3.5% down with a 580 score, or 10% down with a score of 500-579. Individual lenders may require higher scores.
Can the down payment be a gift?: Yes — your full 3.5% down payment can come from a family member as a documented gift, which helps in many of these situations.