​Using the $ you receive as Rental Income as "Real" Income.......

[Michael Dunn]

Using the $ you receive as Rental Income as "Real" Income when a Lender goes to look at your Taxes:

a Lender that I spoke with told me that they could NOT use the $ I show as Rental income on my Taxes........... this could not be added to the actual Income that I make from my actual Job
  I was under the impression that these two streams of Income would be added together , and that the total of the two of them, would be what my DTI would be based on ? They told me that they do not consider the Income that you receive from Rental property in their calculation Is this correct ?
Thank you for the help 

[James Masotti]

Originally posted by @Michael Dunn:

James Masotti and Richard Sherman ,

thank you both for your replies 

It is for a VA loan , and I have 2 years of Rental income on this Property via claimed on my Taxes .

Not sure why they are saying that they Can not use any part of the Rental Income as Earned income ? Is it because it will be for a VA loan ?

The source document you're looking to reference in regard to this I believe is VA Pamphlet 26-4 - Lenders Handbook. The section I believe pertaining to the usage of rental income in qualifying for the loan is Chapter 4 - Credit Underwriting, Section 2 - Income, Sub-section 'o' - Rental Income

You should be able to find it starting on page 21 of the following link

https://www.benefits.va.gov/WARMS/docs/admin26/pamphlet/pam26_7/ch04.pdf