Rental income for primary home loan

[Horacio Gutierrez]

Hello, Say I bought a duplex with an fha loan and later on, I want to move out and use the rental income which is 75% of the duplex rent in applying for another home loan. Is 1 year of landlord experience when leaving one of the duplexes enough to use that rental income for the debt to income ratio for the loan im applying for my new home loan pr does have to be more years of landlord experience like 2 years?

[Andrew Postell]

@Horacio Gutierrez in general you can use rental income right away to help you qualify for another loan.  Meaning, if you speak with a lender that won't allow you to use rental income RIGHT AWAY....go find another lender.

Now, there is a slight element here that I need to bring up. When you need a loan to buy a house using rental income is dependant on the loan itself. I mention this because if you need ANOTHER FHA loan on your 2nd home....and assuming you can qualify for a 2nd FHA loan (there's rules to getting 2 FHA loans too)....then you would need 25% equity in your current FHA property in order for FHA to allow the rental income from your vacating property. Fannie Mae and Freddie Mac do NOT have that type of a rule. So if you have 0% equity, used a Fannie/Freddie loan on your next property, rental income is allowed to be used right away.

*WHEW*  As you can tell, there are some important nuances to this so make sure your lender knows and understands all of these rules to help you qualify for your next property.  Feel free to tag me with any other questions. Thanks!