Asked by William Grant, Fayetteville, NC • Thu Feb 14, 2013
Okay I've heard and read several different and contradictory explanations on how and if rental income can be used in qualifying for a mortgage for an investment property. The two main explanations I've heard are A) 75% can be used if existing leases are in place and have at least 12 months left before expiration B) No rental income can be used you have to qualify solely on personal income. I can give a hypothetical to base answers off of: If I have two years experience as a landlord and want to buy a triplex (my first venture outside of the single family/condo territory) priced at 130,000, the monthly revenue as its rented before purchase is $1500, and I put 25% down, how much more income do I need to show to qualify? Will current rents count or not? The property is located in Fayetteville, NC and will NOT be owner occupied. Thanks in advance because I would love to clarify this issue.
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