Income Too High For 5% Down?

[Art Maydan]

I've been having a hard time getting an offer accepted on a multi-unit using FHA financing, so I decided to switch to conventional 5% down. My lender told me: "In Cook County your combined income (you, your wife and rental) can't be more than $76,000 to qualify for the 5% down loans. Based on the info I have you are already at $71,217 between you and your wife. So it does not leave much room to absorb the rental income."

Is that a bank rule or a law? If we take my wife off the loan, I can’t qualify for most houses we’re looking at alone. Can we just say we’ll occupy all units?