Financing in Pittsburgh>Question Details

Pgh100, Home Buyer in Pittsburgh, PA

Looking to purchase 2 unit multi-family to rent and live in, Is potential rental income taken into consideration when applying for mortgage?

Asked by Pgh100, Pittsburgh, PA Sun Feb 5, 2012

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4
Hello PGh,

Yes rental income will be looked at as there is a rent schedule done on the appraisal. The lender will want to see a lease in place and a deposit check before using that income as part of the qualification.

Regards,
Alan Openshaw
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
VOTED BEST IN BUCKS 2010
NMLS ID 143960
1 vote Thank Flag Link Sun Feb 5, 2012
Is the other side currently rented and occupied? If so then you can prove a rental income and history. If not, it's harder.
0 votes Thank Flag Link Sun Feb 5, 2012
Over the past 35 years that I have been selling real estate the way rental income is addressed has changed several times. It is my understanding that today most typical (FNMA Freddie Mac, FHA) types of financing will no longer use rental income to qualify for a loan unless you have a minimum of a two year rental history for the subject property.
0 votes Thank Flag Link Sun Feb 5, 2012
Potential rental income is not considered when applying for a mortgage unless you have a tenant already and have signed a lease with them. If you have any other questions, I would be very happy to answer them.
0 votes Thank Flag Link Sun Feb 5, 2012
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