Home Buying in Keansburg>Question Details

Thomas Simmo…, Home Buyer in Shelburne Falls, MA

I may want to buy a multi-unit home in Keansburg &live in 1 unit. Have $50k cash. Will rental income count as my income when applying for mtge?

Asked by Thomas Simmons, Shelburne Falls, MA Fri Oct 18, 2013

Help the community by answering this question:


Thomas -

Yes it is possible to have the rental income count as income to offset the mortgage and debt.

It is specific to the property type and mortgage loan program.

If you would like more information or to discuss the specifics, please contact me via my information below.


Matthew Zimmerman
Mortgage Loan Originator
NMLS: 70365
Annie Mac Home Mortgage
700 East Gate Drive, Suite 400
Mt Laurel, NJ 08054
Cell: 856.904.4122
0 votes Thank Flag Link Sat Oct 26, 2013
Thomas in NJ you are now required to have 2 year history as landlord before you can count the rent as income
0 votes Thank Flag Link Sat Oct 26, 2013
What if the *property* has a 2 year history, rather than you? That would make new purchases and transfers of existing properties very difficult!
Flag Sat Oct 26, 2013
Hi Thomas,

In general, yes you can, but there could be other variables which the lender will consider.

The lender will want to document the earning potential of the rental unit and it's likelihood to continue.

First of all, the lender will require the appraiser to provide a Comparative Rent Analysis as part of the appraisal. This is basically going to tell the lender what the market level rent is in that area for a similar unit. They also may want the appraiser to comment on the livability of the unit. If you need to get in there and gut out the 2nd unit and make a lot of repairs then it's likely you can't count on any income right away. If it's move-in ready and easy to rent then you'll probably have an easier time.

Even better yet is if there is a tenant in there already who has a signed lease with the current owner that you can just take over. The lender will probably use the smaller dollar amount of the current rent and market level rent, but this will make it easier for you still.

Feel free to give me a call or email me if you'd like help with getting pre-approved.


Tony Grech | Mortgage Loan Originator | NMLS 977416
PMAC Lending Services, Inc.
T (248) 945-9070 | F (248) 945-4842 | C (313) 622-7383
0 votes Thank Flag Link Fri Oct 18, 2013
Most lender's will take 75% of the gross rents and count that towards your income. If you do not have a history of being a Landlord and receiving rental income then Lenders may use market rent supported by form 1007 or Form 1025 which needs to be done by an appraiser. If there is a lease on the property that is being transferred to the borrower, the lender must verify that it does not contain any provisions that could affect Fannie Mae's first lien position on the property.

I hope this helps.

All the best,

Fritz Walter
0 votes Thank Flag Link Fri Oct 18, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer