Asked by Icgirl, Woodstock, NY • Sun Aug 1, 2010
The first lender I spoke with - at a Credit Union- said that FHA won't lend on a 3 family with a non-occupant co-borrower. I have a piece of paper stating that as the reason for rejection, but can't tell if it's from the FHA.
Then I spoke with a broker. He said that's not the rule at all. However, he thinks I'll run into trouble because I am on the deed of a house 15 miles away and because it will be difficult to find comps for the property.
Does anyone know the truth? Anyone know what percentage of the rental income I can use toward the loan? (I hear rules change 25% or 10% depending on area.)
I could get myself taken off the deed on the other property (and use it as vacation rental), but how do I further convince FHA that I intend to occupy? I'm self-employed as a massage therapist, but one of the attractions of this property, quite honestly, is that the rental income should mostly cover the mortgage, and i'm gradually becoming disabled with auto-immune illness. Dare I admit it?
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