Primary loan as a rental
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!
#2 Private Lending & Conventional Mortgage Advice Contributor
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#2 Private Lending & Conventional Mortgage Advice Contributor
- Lender
- Dallas, TX
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.
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Lender Alabama (#69841), Virginia (#MLO-35815VA), Texas (#323441), Pennsylvania (#64778), Oregon (#323441), Louisiana (#323411), Iowa (#31166), Georgia (#55988), Florida (#LO40080), and Colorado (#100506224)
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.
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Broker CA (#876196)
- Instant Rate Quotes, Inc.
- https://instantratequotes.com
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.
@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.
- Conner Olsen with The Moorhead Team
- 702-521-0034
- [email protected]
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.
@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