Using Recent Rental Income to Qualify for a HELOC

[Jodie R.]

Hi. I'm trying to qualify for a HELOC. However, I need to be able to use rental income from my recently purchased rentals in my debt to income ratio. The two rentals were purchased within the past month. One is already rented out, and the other one to soon be rented. The big banks I have gone to so far have said they can't include this new rental income in my qualification, and I need two years of rental income to show before using it in my qualification. Are there any banks out there that will let me show a new lease agreement and one month's payment so that I can use this rental income to get the HELOC?

[Kyle J.]

@Jodie R.  The two years of rental income requirement is only a requirement of the banks that told you that.  It doesn't mean it's a requirement for other banks.  With HELOCs, each bank can (and do) make their own rules.  You'll just have to call around to find a lender that works for you.  And yes, there are banks that do HELOCs on investment properties.