Can you use rental income to help qualify for a loan in MN?

Duluth, MN · Member since 2015 · 7 posts · 0 votes

When I bought a house 2 years ago, I wanted to buy a duplex and my lender told me I wasn't able to use the theoretical rental income to help qualify.

Is this still the case??

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Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes

No. I’m sure Tim Swierczek can give you a more detailed answer but the best of my knowledge you can use 70% of gross rents to help qualify.

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Jordan MoorheadBusiness Member
Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
8y
No. I’m sure Tim Swierczek can give you a more detailed answer but the best of my knowledge you can use 70% of gross rents to help qualify.
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Daniel Kurkowski
Real Estate Broker · Minneapolis, MN · Member since 2015 · 109 posts · 125 votes
8y
I have done it several times as well. Shouldn't be a problem if you are going FHA, but conventional is another matter in my experience.
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Tim SwierczekPro Member
Lender · White Bear Township, MN · Member since 2016 · 1k+ posts · 1k+ votes
8y
@Jesse M. @Jordan Moorhead @Daniel Kurkowski
If there are no current leases in place you can you 75% of potential rent if there’s a current lease you need to use that number.
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John Woodrich
Flipper/Rehabber · Minneapolis, MN · Member since 2016 · 1k+ posts · 1k+ votes
8y
@Jesse M. I will confirm that Tim is correct and if you need a financing guy he is your man. He personally invests also so can help you in many ways.
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