House hacking loan question

[David Morse]

How do you prove potential future rental income to a lender? Or can you not factor that additional income in? Seeking an FHA loan. First time home buyer looking to house hack a triplex or quadplex. Living in one unit renting the others. Thanks in advance for any helpful advice!

[John Warren]

@David Morse the appraisal more or less takes care of proving the income of the building. The lender can then use 75% of the current rents or 75% of the pro forma rents to help you qualify from the income side. This is just one of the many reasons that I love the house hacking strategy! It really makes buying a small multifamily property one of the more affordable things you can do to get started.