Mortgage Blog

How reported rental income affects the loan qualification?

September 17th, 2010 10:58 PM by Eric Fang

I have one purchase loan failed last week.

The borrower has two rental properties other than the
current primary. And they want to purchase another home
as the new primary but they could not use the rental
income from the current home because of less than 30% of
the equity of the current home. So We need to use the rental
income of $2000 and $2500 respectively from the two rental
properties he owns. And the borrower indeed have rental
agreement for those rental income. But the lender did
not acknoledge that. They only check what's the rental
income on the 2009 tax returns(schedule E), which was
far less because of the remodel and some other reasons.

So for those purchases, if we need those rental income
to qualify the purchase, just remember the low income
on the tax returns may affect your purchase.


Posted in:General
Posted by Eric Fang on September 17th, 2010 10:58 PM



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