Understanding Loan Officer Compensation Understanding Loan Officer Compensation One of the most common questions new mortgage professionals ask is: “How much does a loan officer make per loan? ”
Unlike many salaried jobs, a loan officer’s income is largely based on commissions from each closed loan. This means their earnings depend on:
Loan size (bigger loans = higher commission). Commission percentage (varies by company). Number of loans closed each month. Whether they pay company fees (desk fees, tech fees, or flat-per-file fees). According to the Mortgage Bankers Association (MBA), loan officer commissions typically range from 0.5% to 1% of the total loan amount (MBA Compensation Report ).
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Average Loan Officer Commission Per Loan Here’s a simple breakdown of what that looks like:
Loan Amount
0.50% Commission
1% Commission
$200,000 $1,000 $2,000 $300,000 $1,500 $3,000 $400,000 $2,000 $4,000 $500,000 $2,500 $5,000
In most U.S. markets, the average mortgage size is about $350,000 (Freddie Mac , 2024). At 0.75% commission, that equals about $2,625 earned per loan.
How Many Loans Do Loan Officers Close Per Month? How Many Loans Do Loan Officers Close Per Month? New loan officers: often 1–3 loans/month in their first year. Experienced loan officers: 4–8 loans/month is common. Top producers: 10+ loans/month, which can translate into six-figure annual incomes. According to the Bureau of Labor Statistics (BLS), the median annual wage for loan officers is $65,740, while top performers exceed $100,000+ (BLS Loan Officer ).
Example: How Much a Loan Officer Can Make Per Loan Example: How Much a Loan Officer Can Make Per Loan Let’s assume a loan officer works on an average loan of $300,000 with a 0.50% commission:
1 loan/month → $1,500 × 12 = $18,000/year (plus base salary if applicable). 3 loans/month → $4,500 × 12 = $54,000/year. 5 loans/month → $7,500 × 12 = $90,000/year. 10 loans/month → $15,000 × 12 = $180,000/year. This shows exactly why loan officer jobs are often called “performance-driven careers”—the more loans you close, the more you earn.
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Why Loan Officers Earn More with Loan Factory At first glance, the difference between Loan Factory’s flat fees and a traditional brokerage’s commission split may not seem huge on a single loan. But when you look at the big picture, the advantages become clear.
1. No Monthly Desk or Tech Fees Traditional brokerages: Loan officers often pay $500–$1,000+ per month for desk space, CRM, and marketing tools—even if they close zero loans that month. Loan Factory: $0 monthly fees. You only pay when you close a deal. No risk, no overhead. 2. Keep 100% Commission (No Splits) Traditional brokerages: Your commission is split with the company—usually 70/30 or 80/20. Example: On a $3,000 commission, you only take home $2,100–$2,400. After paying monthly desk and tech fees (about $500 or more), your real earnings drop to around $1,900 or less per loan. Loan Factory: You keep the entire $3,000 commission. The only costs are:$595 flat admin fee $500 processing fee (if you use our in-house processing team) That means you still net $1,905 per loan—with no monthly fees and free technology included. At a traditional brokerage, you lose money every month to splits and fees. At Loan Factory, you keep what you earn and only pay when you close a deal.
3. Free MOSO Technology ($900+/month value) Most loan officers spend nearly $11,000/year on software like Loan Sifter, Arive, HomeBot, and Canva.
With Loan Factory’s MOSO platform, you get all of this for free:
CRM + LOS + Pricing Engine AI-powered borrower applications Automated DU/LPA & compliance Marketing tools (ads, reviews, email campaigns) That’s money back in your pocket every single month.
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4. More Deals, Closed Faster With MOSO automation, company-generated leads in 42 states, and in-house underwriting, full-service processing, Loan Factory helps you close more loans in less time.
Even if you only close 2–3 extra loans per month, your annual income jumps by tens of thousands of dollars compared to working at a traditional brokerage.
5. Mentorship and Career Growth At Loan Factory, you’re independent but never alone:
So, how much does a loan officer make per loan? On average, $1,500–$3,000 per loan, depending on loan size and commission rate. With the right platform, income can scale quickly.
Why Loan Officers Earn More with Loan Factory If you’re ready to maximize your earnings, join Loan Factory and see why over 2,000 loan officers have already made the switch to The Best FinTech Mortgage Platform in the USA.
FAQs – How Much Does a Loan Officer Make Per Loan? 
