Can I use rental income to qualify?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Yes. Existing rental income shown on your tax return counts, and for a property you're buying, lenders typically count 75% of projected market rent toward your income. The 25% haircut covers vacancy and upkeep.
For investors who'd rather skip personal income entirely, a DSCR loan qualifies on the property's rent alone. We'll choose between counting rental income on a conventional loan or using DSCR based on your goals.
Rent can boost your file
Yes, rental income can help you qualify. If you own rentals or are buying one, lenders often count a portion of the rent, usually around 75%, to offset the mortgage payment.
The 25% haircut covers vacancies and upkeep. Existing rentals are documented with a lease and tax returns.
When there is no history
Buying a rental with no prior history? Lenders can use a market rent estimate from the appraisal. On a DSCR loan, that projected rent alone can qualify the property.
Rental income opens doors many buyers miss. Apply now and we will show how it changes what you can afford.