A Two Year History Isn't Required For Conventional Financing.

[Jerry Padilla]

I have read several times that investors think that they are unable to utilize rental income if they don't have a two year history and I just wanted to clarify. 

If a conventional lender is able to choose to just use Fannie Mae, a two year history isn't required.

Fannie Mae uses 75 percent of rent on lease or 75 percent of calculated potential income if the property is not leased. This is using the average rent for the area determined by the appraiser. So Fannie Mae requires a 25 percent vacancy factor, when the property's net income is too early to reflect on tax returns. If the property is on tax returns, then the net income is used. 

Freddie Mac requires a two year history.

A conventional lender must have the ability to choose between using Freddie Mac or Fannie to avoid a two year history.