To become a loan officer in the US, you typically need a bachelor's degree in a field such as business or finance, followed by on-the-job training once you're hired. If you want to be a mortgage loan officer, you also need a Mortgage Loan Originator (MLO) license, which means prelicensing courses, a national exam and background and credit checks.
That license is the big dividing line. BLS lists it as a requirement for mortgage loan officers specifically, and it has to be renewed every year.
The facts on this page come from the US Bureau of Labor Statistics (BLS) Occupational Outlook Handbook page for loan officers, read on 26 October 2026.
Loan officer pay and jobs at a glance
| Measure | BLS figure |
|---|---|
| Median pay (May 2025) | $76,690 a year, $36.87 an hour |
| Lowest 10 in every 100 earned less than | $39,430 |
| Highest 10 in every 100 earned more than | $153,180 |
| Jobs in 2025 | 283,000 |
| Projected growth 2025 to 2035 | 1%, slower than average |
| Openings each year | About 17,100 on average |
Those figures are as of October 2026, from the May 2025 BLS wage survey. The gap between the bottom and the top is wide, and the next section explains why.
The route in, step by step
- Earn a bachelor's degree, usually in business or finance. Commercial loan officers need to read financial statements and understand business accounting.
- Or build related experience instead. BLS says some people get in without a degree if they've worked in banking, customer service or sales.
- Get hired and complete on-the-job training, which is often a mix of formal company training and informal learning over the first few months.
- For mortgage work, get your MLO license: complete prelicensing courses, pass the national exam and submit to background and credit checks. Your state may add its own requirements.
- Renew your MLO license every year, and consider an optional certification to show expertise.
Why pay varies so much: commission
Some loan officers earn a flat salary. Others are paid on commission, usually a base salary plus commission on the loans they originate, and some get bonuses based on how many loans they close or how well those loans perform.
That's why the top 10 in every 100 earned more than $153,180 while the bottom 10 earned less than $39,430, as of October 2026. If you're comparing job offers, ask how the pay is split between base and commission before you compare the headline number.
Where loan officers work and what it pays
Credit intermediation, which covers commercial banks, savings institutions and mortgage companies, employs 80% of loan officers. The pay leader is a surprise.
| Industry | Median pay, May 2025 |
|---|---|
| Automobile dealers | $106,000 |
| Management of companies and enterprises | $79,570 |
| Credit intermediation and related activities | $76,070 |
Loan officers at automobile dealers earned a median of $106,000, well above the $76,070 in banks and mortgage companies, as of October 2026. It's a small employer group, at 4 in every 100 jobs, but it's worth knowing about if you're open to auto finance.
What the job is like
- Consumer loan officers usually work in an office.
- Mortgage and commercial loan officers may meet clients at their homes or businesses.
- Most work full time, and some work more than 40 hours a week.
- Attention to detail matters, because each piece of information on an application can change how profitable a loan is.
Mortgage companies may prefer candidates with residential mortgage or real estate experience, so a background in property helps. Our guide to growing a real estate career covers that side, and this explainer on getting a mortgage when you're self-employed shows the kind of cases mortgage loan officers handle.
Is it a good career to get into now?
BLS projects just 1% growth from 2025 to 2035, slower than average. Even so, there should be about 17,100 openings a year, mostly from people retiring or moving to other jobs. Businesses and households will keep needing credit, and someone has to judge whether each applicant can pay it back.
Which kind of loan officer should you aim for?
BLS describes three main types, and the route in differs a little for each. It's worth deciding early, because it shapes what you study and what experience you collect.
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| Type | What they do | What helps you get in |
|---|---|---|
| Consumer loan officer | Handles personal loans, usually from an office | Banking or customer service experience |
| Commercial loan officer | Analyses the finances of businesses applying for credit | Business accounting and reading financial statements |
| Mortgage loan officer | Handles home loans and may meet clients at home | An MLO license plus residential mortgage or real estate experience |
If you're coming from sales or customer service without a degree, consumer lending can be a realistic first step, because BLS says related experience can stand in for the degree. Commercial lending leans hardest on finance knowledge, and mortgage lending adds the license and its annual renewal.
My verdict
Loan officer work pays well above the all-jobs median, at $76,690, and it's one of the few finance roles where related experience can stand in for a degree. Growth is slow, so you'll be competing for openings that come from turnover rather than new jobs. If you want the mortgage side, plan for the MLO license from day one: the courses, the national exam and the background and credit checks are the gate, and you'll renew it every year.
Frequently asked questions
Do you need a degree to be a loan officer?
Loan officers typically need a bachelor's degree, but BLS says some enter without one if they have related experience in banking, customer service or sales.
What license does a mortgage loan officer need?
A Mortgage Loan Originator (MLO) license. You complete prelicensing courses, pass a national exam and submit to background and credit checks, and the license is renewed annually.
Which loan officers need an MLO license?
BLS lists the Mortgage Loan Originator license as a requirement for mortgage loan officers. Check your state's rules and your employer for other lending roles.
How much do loan officers make?
BLS reports a median of $76,690 a year for loan officers in May 2025, as of October 2026.
Are loan officers paid on commission?
Some are. Pay varies by employer: some loan officers earn a flat salary, while others get a base salary plus commission on the loans they originate.
Where do most loan officers work?
Credit intermediation and related activities, which includes banks, savings institutions and mortgage companies, employs 80% of loan officers.
