Financing in Somerville>Question Details

Bluesky, Home Buyer in Boston, MA

I want to purchase a two-family and live in one of the units. How will FHA treat the income from the rental unit?

Asked by Bluesky, Boston, MA Sun Nov 28, 2010

I have read that it will take 85% of the rental income and add it to my income in terms of qualifying for the mortgage. However, I also heard that this is not the case if the unit is vacant. Can someone clarify?

Help the community by answering this question:


FHA will allow 85% of either market rents (determined by appraiser if unit is vacant) or 85% of actual rents. It is not specific to any lenders it is a FHA guideline. Only if you are not buying owner occupied would you have to prove renal experience to use rental income to qualify. If you have any further questions I have been lending (not a broker) on FHA loans for 18+ years, give me a call (508)989-4295.
0 votes Thank Flag Link Sun Nov 28, 2010

I won't repeat the answers to your questions from other agents. However, I specialize in multifamily investments and am familiar with the Somerville market that you are interested in. I think my piece on investing in the two-family Medford market would be interesting to you:… I can get you the equivalent numbers for the Somerville market.

Investing in a two family is a very wise choice. There are many factors to consider when making the decision to buy a multifamily of any type. You want to consider how easy it will be to find good tenants. You want to consider which property will give you the best return on your investment. You want to consider what type of lifestyle you and perhaps your family want. I can help you out with these questions and more.


0 votes Thank Flag Link Sun Nov 28, 2010
I can help you find a local mortgage broker who can review your best options with you (FHA might not be the best). When you are ready, I live, list and sell in Somerville and I can direct you to the neighborhoods with the most positive future prospects. There are great opportunities available. Call me, Damian, at 617-650-6480 or email me at
0 votes Thank Flag Link Sun Nov 28, 2010
You should be able to use it but if the unit is vacant you will need to prove market rents. The appraiser will do that.
Web Reference:
0 votes Thank Flag Link Sun Nov 28, 2010
For the bank i work with it does not matter if the unit is vacant. They will take 85% of the rental income for the area based on what the appraiser puts on the appraisal. I specialize in these type of ;loans if you would like a quote. Please call me at 781-277-1792 or email
0 votes Thank Flag Link Sun Nov 28, 2010
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