Rental income applied to mortgage?

[Derek Morrison]

I'm looking to buy my first multifamily property. I'm curious if any lenders or experienced investors could speak to how the rental income from the target property affects the mortgage I could receive. For example, if I could qualify for a $250,000 mortgage based on just my W2 income, would the amount I can qualify for be increased based on rental income from the property I'm looking to purchase? 

[Jay Hurst]

Quote from @Derek Morrison:

I'm looking to buy my first multifamily property. I'm curious if any lenders or experienced investors could speak to how the rental income from the target property affects the mortgage I could receive. For example, if I could qualify for a $250,000 mortgage based on just my W2 income, would the amount I can qualify for be increased based on rental income from the property I'm looking to purchase? 

 @Derek Morrison   The lender will use this form for a conventional 2-4 unit owner occupied to calculate the rental income that can offset the payment:  Fannie Mae for 1037

For a purchase you would use step 2. The upshot is that you can use 75% of the rental income the non-owner occupied units would generate as determined by the leases in place or the appraiser's number (that what the Fannie Mae form 1025 is referring to). If 3 units bring in 3000, 75% is 2250. You can use that 2250 to offset the payment. In that case if you PITI is 3000 you would only have to cover 750 with the rest of your income.