If 75% of the market rent covers the mortgage will banks...

[William D.]

If 75% of the market rent covers the mortgage do I still need to use my income to qualify for the mortgage?

Using round numbers for ease of explanation.

Mortgage: $1000

Market rent: $1350

Bank will use 75% of the market rent as income to qualify for the mortgage.

75% of $1350 is $1012, which covers the mortgage (PITI).

Will I still need to have X amount of income to qualify even though the mortgage will be covered with the rental income?

[Eric James]

Many banks will count 75% of the rental income after PITI (principal, interest, taxes and insurance) has been deducted toward your debt to income ratio. Your other sources of income are also counted in determining this ratio to see if you're within their lending criteria.