Posted on: 14th Sep, 2010 05:42 pm
Can I use rent income to offset mortgage payment in order to qualify for a new mortgage?
Hi Luis,
Your rental income will be considered as a part of your gross income when you apply for a mortgage. However, if you already have a mortgage, then it will be difficult for you to qualify for another home loan.
Thanks
Your rental income will be considered as a part of your gross income when you apply for a mortgage. However, if you already have a mortgage, then it will be difficult for you to qualify for another home loan.
Thanks
The answer isn't just plain no. If you have received the rental income for at least two years and declared it as income(proven on tax returns) and have a lease agreement which is not about to expire, it can be counted as income and allow you to qualify for another loan as long as your credit scores are good.
I have a home that I will be turning into a rental property once I buy another home, but I still qualify upfront for both mortgages without the rental income, but as jaemeshogg says that is rare.
I have a home that I will be turning into a rental property once I buy another home, but I still qualify upfront for both mortgages without the rental income, but as jaemeshogg says that is rare.
If you take out a conventional loan, you're able to use 75% it. If you take out an FHA loan you're able to use 85% of it.
