Rental Income for first time home buyer

[Xiaoyan Liang]

Hello,

I am looking to purchase a 2-family unit in Boston, MA for the first time.

Fannie Mae implemented a new rule that says "If the borrower currently owns a principal residence (or has a current housing expense)..." does renting from a family member for under market value count as housing expense? And how long do lenders need proof for? 

Fannie Mae also says " If the borrower has documented property management experience..." What considers documented property management experience? If I help my family manage the house by collecting monthly rent, doing weekly cleaning/repairs, mowing the lawn, etc. does that count and what kind of documents will lenders need for proof of experience? 

 Thank you so much and any help/advice is appreciated. 

Yan

Link to Fannie Mae's new rule: 

https://selling-guide.fanniemae.com/Selling-Guide/Origination-thru-Closing/Subpart-B3-Underwriting-Borrowers/Chapter-B3-3-Income-Assessment/Section-B3-3-1-Employment-and-Other-Sources-of-Income/1736864771/B3-3-1-08-Rental-Income-10-02-2019.htm#Calculating.20Monthly.20Qualifying.20Rental.20Income.20.28or.20Loss.29