Purchase A Home With Future Rental Income

Written by Rob Breiner

August 15, 2023

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


10 Minute Tuesday

Mortgage & Real Estate News, Info, and Q&A

100% Facts, 0% Fluff

Quick and concise news, updates, and tips relevant to the mortgage and real estate market delivered in bite-size chunks in 10 minutes or less! Q&A after each presentation.

Attend the live Zoom to ask your questions. Subscribe for invites and to receive the recorded replays. Hosted every 2-3 weeks.

Join the invite list

Robert Breiner. Licensed Loan Officer NMLS# 1199942 | BRE# 01960372 Golden Bear Capital Inc. DBA Click Mortgage | 10174 Old Grove Road Suite 140​, San Diego, CA 92131​ | Phone: 888-440-3001 | Fax: 888-500-5815 Golden Bear Capital Inc. DBA Click Mortgage (NMLS# 284021) is licensed by the California Department of Business Oversight (CFL License# 603H185) and the California Bureau of Real Estate (License #01847011), Nevada Division of Mortgage Lending License #4043), Utah Division of Real Estate (License #6332409), Washington Department of Financial Institutions (CL-284021).

We are licensed to lend in the following states: Arizona, California, Colorado, Florida, Missouri, Nevada, Texas, Utah, & Washington | NMLS Consumer Access