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Updated almost 2 years ago on . Most recent reply
How many years of rental income needed for new mortgage?
We have a short term rental that we bought at the beginning of last year and it rented well in 2022. The condo complex is undergoing renovations and it won't be available to rent until late 2023 (so it won't show any income for 2023 until later this year) but I'd like to get a mortgage soon. Can the income from this property be used? Any insight on this? Thank you.
Most Popular Reply
Guide on departing residence is dependent on the loan-type on your new purchase:
If your new loan is Fannie, you can use 75% of the lease on departing residence to offset existing PITIA , no appraisal required.
If your new loan is Freddie, its lesser of the two: 75% of the lease or the 1007/1025 (appraisal required) to offset existing PITIA.
Different answers due to differing guidelines between GSEs. Stay away from FHA on this one, much more headache than either of the above :)