IN BUYING a multifamily unit partially occupied,can i use that rental income to qualify for loan?

Asked by Eyan Maureen, 33604 Sun Jan 13, 2013

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Lisa Reeves’ answer
Lisa Reeves, Agent, Tampa, FL
Mon Jan 14, 2013
The amount of income that the lender allows will be determined on whether you are buying 5 units or less which is considered to be a residential property or if you are buying over 5 units which is a commercial loan. Without this information it is hard to say exactly how the property and the income will be determined. Another factor is whether you have any other experience with multifamily which determines how much of the income the lender will allow you to use. Good-luck with your purchase!
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Bryant Gattos, Agent, Tampa, FL
Mon Jan 14, 2013
This is a Financing question Eyan. Before making any purchace on commercial property you will need all of the information for your broker to review.

As mentioned below, rent roll and tennant time on books or term of current leases will be a factor. In addition the property condition and upkeep costs will be a large factor.

The market has had many changes in the way banks approve loans with the added overlays on the standard conditions that used to be the norm.

Feel free to call me to give you a better idea of what your next move will be.
I am Local

Bryant Gattos
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Lynn Brock, Agent, Sarasota, FL
Sun Jan 13, 2013
Eyan Maureen, typically lenders allow 75% of rental income. This allows for vacancy rate. Depending upon the size of the complex and the type of loan that you will be pursuing the lender might allow the use of the current tenants. you will have to produce the leases and a rent roll for the existing building.

Best regards,

Lynn Brock
Brock Realty Inc.
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Julie Rosent…, Agent, Jupiter, FL
Sun Jan 13, 2013
Hi Eyan, I recommend your teaming up with a realtor who can help you verify the rental income The number of units May influence your loan options.
Be free info at www .buy-sell-rent-com. Your go-to Florida realtor
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Scott Godzyk, Agent, Manchester, NH
Sun Jan 13, 2013
For most types of mortgages, they use 75% of rental income to add to your income. You should check with a local and trusted loan officer who can prequailify you and let you know what your options are.
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