Using Rental Income To Qualify For Conventional Financing.

[Jerry Padilla]

Fannie Mae doesn't require a two year history.

Freddie Mac does require a two year history. 

INCOME—RENTAL

If any rental income is reflected on the borrower’s tax returns for the subject property than that rental income is used.

When using Freddie Mac (or if lender doesn't have the option to choose Freddie Mac or Fannie Mae) the borrower must provide documentation of a 2 year history of receiving rental income.

When the property is initially purchased and not reflected on tax returns for Fannie Mae - the current lease agreements may be used as rental income. If the property is currently not leased, than the appraiser will determine the potential market rental income. (only 75 percent of the rental income is used when considering lease agreements, or market rent.)