Did you know that each agency has different requirements for using rental income from the borrower’s departing residence to qualify? Please see the guidelines below and let us know if you have any questions.
Rental income can be considered for qualifying purposes using 75% of the current lease agreement.
- Fannie Mae – Current signed lease agreement
- Freddie Mac - Current signed lease agreement AND documentation evidencing deposit of first month rental payment and security deposit
If there is no lease the lender may still consider the prospective rental income for offset purposes:
- Obtain a working knowledge of the local rental market from a local real estate agent, and
- the local rental market is very strong