Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 7 years ago,

User Stats

18
Posts
2
Votes
Kyle Nelson
  • Lansing, MI
2
Votes |
18
Posts

FHA Approval Using Market Rental Appraisal

Kyle Nelson
  • Lansing, MI
Posted
Hello everyone, I am about to place an offer on a 4-unit property. My intention is to use an FHA loan, but I will need the rental income from the property to qualify. My lender tells me this already makes it a challenge. To add to it, the property is vacant. Luckily, FHA guidelines allow you to qualify after having a market appraisal of the rents done. My lender tells me that this is a difficult process and almost never succeeds because the comparable properties have to be very similar to get a rental appraisal from them. To me it seems like the rents could come in very low and I could still qualify because the asking is only a small bit above what I was pre-approved (still to much for me to cover with cash) for on my own. Has anyone been through this process to get approved? What are the chances they will be unable to give an estimated rent number at all, does this happen? My figures show if the offer is accepted, but the underwriters reject my file I am only out $600 + time for the appraisal. As I mentioned, being very conservative with the appraised rental value of the units it should be plenty to qualify. Looking for advice from experienced investors/lenders. Thank you everyone!

Loading replies...