With all of the new rules and regulations in today's finance market, can rental income from an owner-occupied duplex be used in a VA refinance?

Asked by Shawn Burke, Cherry Hill, NJ Mon Sep 17, 2012

I have a client that is presently living in a duplex that he purchased 8 months ago. He lives in one unit, and recently rented the other unit for market price. He is a veteran that would like to refinance his FHA mortgage with a VA loan to get rid of the $240 MIP each month. He has great income and credit, but he has taken on additional consumer credit since purchasing the home, and therefore his debt/income ratios may be a "bit off" right now (50%). Can the new rental income be used to help qualify for a VA refinance?

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2
Robert Green…, Agent, Cherry Hill, NJ
Tue Sep 18, 2012
Hi Shawn. it is likely that the rental incomce (or a portion of it) can be used to help him qualify. It's important that he contacts a lender who is well-versed at VA loan.
-Robert Greenblatt
Keller Williams Realty
856-575-1818
0 votes
Andrew Tisel…, Agent, Clifton, NJ
Mon Sep 17, 2012
check with a mortgage pro but typically only a percentage of the rental income can be used.
0 votes
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