Discover how to leverage your existing home’s or future home’s rental potential when qualifying for a mortgage. This week we discuss how to use your existing home’s or potential home’s future rental income to increase your pre-approval amount. Whether you’re a property investor or planning to turn your existing home into a rental, this insight is invaluable and can significantly improve your mortgage qualification outlook.

Key Points:

Vacating Rental Income: Income you will receive on your current primary home after moving out and renting it out.

• Eligible for FHA, VA, and conventional loans (not USDA)
• 75% of the gross rent received is added to the buyer’s application
• 1-year lease and proof of security deposit must be provided (not applicable for VA)

Future Rental Income: Income you will receive on a subject investment property or an owner-occupied multifamily home

• Up to 4 units
• Rental income determined by the lesser of the existing tenant(s) rent or appraisers determined fair market rent
• 75% of the eligible gross rent received is added to buyer’s application
• Lease is not required if the property is vacant

Click here to apply for a home loan

~Rob

Join the invite list