is it possible to use income from recently (few months ago) acquired properties to qualify for a fha loan for my personal home? If so what documentation would a bank request?
Usually they require experience as a landlord for at least 2 years; then you can use that income to qualify. It also has to be on your tax returns. It doesn't matter how long you've owned that property usually.
@Mark Bookhagen is right, 2 tax returns is what I've found to be the standard before you can use it as income. I'm right in between now and it's jamming me up.
Also, once you have 2 years of rental income reporting, you can count all new rental income for next purchases. You don't have to wait 2 years for each one, just the first time.
I don't know the specific answer for FHA loans but I suggest you contact a lender directly to find out. My online lender will use recently rented out houses as income for me even though they haven't shown up on tax returns yet. I provide the lease and they use a portion of the rents to offset my DTI ratio. These are for conventional and FHA loans though (no experience with FHA). Also, she uses my projected rent on investment properties when I am getting financing on them.
my recently filed taxes has income frome one unit I previously had. I recently acquired 6 properties. When I file taxes next year, would that be my 2 years that I need to use all rental income?
@William Allen , sounds like your using the exact type of lender I need! U mind sharing that info?? Thanx!
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