Insurance agent · 6 yrs · 745 · conventional
| Borrower | Independent P&C insurance agent (commissions + renewals) |
| Self-employed | 6 years |
| Credit | 745 |
| Program | Conventional 30-year fixed |
| Price | $455,000 (illustrative) |
| Down payment | 15% |
| State | OH |
| Outcome | Approved |
The scenario
Six years in, this independent property-and-casualty agent had built a renewal book that paid roughly $88,000 a year before any new sale — plus new-business commissions that swung between $30,000 and $60,000. Schedule C net landed near $96,000 after marketing, E&O, and vehicle deductions.
The conventional file worked by making the stable part of the income unmistakable: carrier statements separating renewals from new business, a persistency summary showing the book's retention rate, and add-backs (vehicle depreciation, the amortization from buying a small book two years prior) that lifted the two-year average to roughly $109,000. A 745 score at 15% down cleared automated underwriting on the first pass.
What made it work
- Carrier statements split renewals from new business — the recurring stream stood on its own
- A persistency summary answered the chargeback question before it was asked
- Amortization from the purchased book and vehicle depreciation came back as add-backs
- Two-year average trend was level-to-rising, so no lower-year haircut applied
Lessons you can use
Renewals are the stability story — show them separately
A single Schedule C number hides the difference between a volatile seller and a durable book. Statements that isolate the renewal stream let the underwriter see income that arrives whether or not this quarter sells anything — the exact quality conventional guidelines reward.
A purchased book pays twice
Buying a book of business created an amortization deduction — a paper expense that came back as an add-back — while the acquired renewals fattened the recurring stream. The purchase agreement in the file documented both sides of that trade.
Address chargebacks before the statements do
Clawed-back commissions appear as debits and read as instability if unexplained. A one-page persistency summary (retention rate, chargeback rate, trend) converted a potential red flag into evidence of a well-run book.
Your next step
If this scenario rhymes with your situation, start with Mortgages for insurance agents for the full picture, then run your own numbers with the Write-off impact calculator. Every real application is different — use these scenarios to learn the patterns, then confirm specifics with a licensed loan officer.
This profile is a composite educational scenario created by Mortgage Merlin editorial staff — not a real person, transaction, or testimonial. Figures are illustrative and not a quote, pre-approval, or offer of credit. Mortgage Merlin is a publisher, not a lender or broker.