Primary loan as a rental

Primary loan as a rental

San Diego · Member since 2019 · 18 posts · 7 votes

Hello and thanks in advance for any advice,

I'm moving out of my primary and turning it into a rental prop.  All my other properties are on a conventional investment prop loan and the rental income from those props count toward income.  I'm wondering if once the primary is turned into a rental and seasoned long enough will that count towards income even though I'm on a primary loan?

Thanks for your tine!

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Jay HurstBusiness Member
Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
4y

Yes it will.  Just show the lease if it is not yet on tax returns, or tax returns if it is and it can be counted. 

Hurst Real Estate, INC4.986 Reviews
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  • Jay HurstBusiness Member
    Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
    4y

    Yes it will.  Just show the lease if it is not yet on tax returns, or tax returns if it is and it can be counted. 

    Hurst Real Estate, INC4.986 Reviews
  • Stephanie MedellinBusiness Member
    Mortgage Broker · CA · Member since 2014 · 1k+ posts · 644 votes
    4y

    Yes, but you will need to own a new primary residence or at least show a housing payment history to be able to count rental income on new loans.

    Stephanie Medellin, Loan Factory58 Reviews
  • Nick BelskyBusiness Member
    Lender · Orlando, FL · Member since 2021 · 1k+ posts · 704 votes
    4y

    @Joshua Zdunich

    You need to have occupied the primary for at least 12 months.  If you leave before and rent it out, you are committing mortgage fraud.  False occupancy is the largest violation of mortgage fraud and is some cases, borrowers don't mean to do so, but conventional and agency loans are based on the contingency that you will occupy for a said period of time.  While selling your primary to purchase a new primary is a different situation all together, retaining and renting it out could trigger an immediate "note due" from your current lender and the new lender you are trying to finance with should flag this and quiz you on this as well.

    Be careful out there.

    Belsky Mortgage, LLC521 Reviews
  • Real Estate Agent · Austin, TX · Member since 2020 · 1k+ posts · 941 votes
    4y

    @Joshua Zdunich Yes it should, ask your lender. My lender will use a signed lease on my primary to qualify me for the next property.

  • Eric S.Pro Member
    Investor · Concord, NH · Member since 2018 · 28 posts · 19 votes
    4y

    Yes it will count and has to be reported. As others have said make sure you have been in it at least 1 year. Mortgage type makes no difference. Just make sure you update your insurance policy as that 100% needs to convert.

  • Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
    4y

    @Joshua Zdunich- if you provide a completed  and signed rental  agreement  ( lease)  for the " departing " property - your lender  should be able to  use 75% of the  gross monthly income to offset the property payment 

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