MFH Loan Financing w/ Rental Income

[Jason Riddle]

I am considering buying either a triplex or quadplex sometime next year. I plan to purchase a unit, live in one unit, and rent the other units. Also, it is very likely I will be unemployed next year due to quitting my job. I will only have one year of rental income on my tax returns.

Assuming that I have a high credit score, I have the following questions:

1. Can I qualify for a conventional loan or FHA loan solely based off of projected rental income?

2. If so, will only 75% of the rental income be considered as income?

3. Are there any other loan products that I could potentially qualify for if I don't meet conventional loan or FHA loan requirements?

[Juan Lara]

You won't qualify without income. Quit after taking out the loan and having all of the units leased. There's also the option for a DSCR loan which takes into account the rental income of the property for the loan. However, the rate is going to be higher, you have to do it through an LLC, and you cannot live in the property.