HomePath financing is Fannie Mae financing, so it is likely you'll be able to use the rental income without a 2-year landlord history. We offer HomePath financing in Minnesota.
And FHA does *not* have a 2-year landlord requirement. The FHAOutreach.gov website is down now, but the guidelines (updated as of March 2011) can be found at http://www.hud.gov/offices/adm/hudclips/handbooks/hsgh/4155.1/41551HSGH.pdf and it says:
Rent received for properties owned by the borrower is acceptable income for qualifying as long as the lender can document the stability of the rental income through a(n)
Â· current lease
Â· agreement to lease, OR
Â· rental history over the previous 24 months that is free of unexplained gaps greater than three months (such gaps could be explained by student, seasonal or military renters, or property rehabilitation).
The borrower can provide a current signed lease or other rental agreement for a property that was acquired since the last income tax filing, which is not shown on Schedule E.
In order to calculate the rental income
Â· reduce the gross rental amount by 25% (or the percentage developed by the jurisdictional HOC) for vacancies and maintenance
Â· subtract PITI, and any homeownersâ€™ association (HOA) dues, and
Â· apply the resulting amount to
- income, if positive, or
- recurring debts, if negative.