Turn Your Bonus Into Real Estate
As year-end bonuses arrive in early 2026, many would-be recipients - whether first-time buyers dreaming of their own home or investors looking to build wealth are considering real estate. I’ve guided clients through using that extra income to make meaningful progress, from primary residences to rental properties. Here’s how it can work in today’s market.
1. Boost Your Down Payment
Apply your bonus directly to the down payment. For first-time buyers, many programs allow 3-3.5% down on primary residences. For investment properties, expect 15-25% down on non-owner-occupied homes. Even partial use of a bonus (median around $1,800-$2,500 recently, though many vary) can cover a chunk, lowering your loan amount and monthly payments. Temporarily park it in a high-yield savings account while searching.
2. Leverage Bonus Income for Mortgage Qualification
If bonuses are consistent, lenders may include them in your qualifying income, typically averaging the last two years (with W-2s, tax returns, and pay stubs required). One year might work if guaranteed. This can raise your approved loan amount, helping first-time buyers reach a suitable home, or investors target stronger cash-flow properties. For rentals, lenders often credit 75% of the projected rent toward income.
3. Pay Down Debt or Build Reserves
Clear high-interest debt to improve your debt-to-income ratio and strengthen your application. Or build reserves: primary homes need less, but investment loans often require 6+ months of payments in the bank. Set aside for closing costs (2-5% of price) to make offers stand out.
4. Practical Steps to Get Started
Check your credit report and fix errors.
Get pre-approved, sharing bonus history early.
Calculate affordability, including potential rental income for investments.
Team up with a realtor experienced in your goal - primary or investment, 7to find the right properties.
A year-end bonus can accelerate your real estate plans, whether it’s your first home or an income-producing asset. It’s practical and realistic with proper steps. Ready to explore? Message me or schedule a call. Let’s turn 2026 into the year you secure your next property.