Can I use rental income to get a loan

Question

Goodmorning BP community my husband and I currently own one rental property that is fully paid for and we would like to start thinking about getting the second one, the problem we have is my husband doesn’t have a job so he wouldn’t qualify for a regular refinance. My question is can we use the rental income to qualify for a loan?

River Sava · Answer

Hi Iris - Have you looked into DSCR loans? DTIs do not apply, not tax return / personal income eval

Luis Astudillo · Answer

Hello Iris,                                                                                                                                  How are you? I am a licensed mortgage broker for residential and commercial mortgage loans. Based on the information that you have given, the loan application would be in your name since you seem to be the only one employed and use the rental income (75% of rent) to fully qualify you using your employment income, rental income versus your liabilities. On the other hand, DSCR loan programs have become very popular mostly because no proof of income is required and the qualification is based on the cash flow of the property. I will be happy to help you and your husband throughout the loan process let me know when will be a good time to chat.

Sarah Nouri · Answer

HI Iris,

Looks like a DSCR loan might be exactly what you are looking for! This type of loan does not look at your income to qualify you. No tax returns, no pay stubs, and no w2's. Instead, what is looked at is the income the property generates to qualify you for a loan. And another great thing about this loan is it is not reported on your personal credit so, it does not affect your DTI.

Hope this helps!

Ko Kashiwagi · Answer

Hi Iris,

A DSCR financing would be a great way to get cash out from the equity. You will be using FICO and Rent/PITI to qualify (no income, tax returns required).

Iris Sanchez · Answer

Thank you I’m not aware of dscr loans I’ll look into it