Conventional Loan 2023

[Elie Merisier]

Per 2023 guidelines, can I use rental income to qualify for a conventional loan?

[Albert Bui]

Quote from @Elie Merisier:

Per 2023 guidelines, can I use rental income to qualify for a conventional loan?

 Hi Elie,

Its always been able to be "used," the question you should dig into is in what context can it be used, what types can be used (short/long term/vacating a primary/or a second home conversion to rental/ or multi-family rental calculation/etc).

Then secondly once its able to be used, how does a lender calculate the actual income and how it affects your borrowing power in your specific hypothetical situation because in each context the calculation may change. One case in point is the difference on how rental income calculation is done when you live at the property versus when you move out (hint: when you move out its 2-3x more effective calculation versus when you live there). 

People here are quick to recommend their DSCR or private money product but its like yeah... let me go through all of my less pricey options first and uhh yeah I'll check out that pricey double digit rate product later... (last resort or back up strategy).

@Matthew Kwan @Carlos Valencia