Rental Income for Loan Qualification

[Benjamin Sulka]

Is it typical for lenders to allow 75% of rental income on your previous property to help you qualify for your next property? 

Would love to hear your experience with lenders and scaling your portfolio with the right one. 

-Ben

[Ty Coutts]

Hello @Benjamin Sulka!

Great question! If you are leaving your primary home to buy another primary home and you want to leave that property as a rental, then you can absolutely offset that liability with future rent income.

The conventional financing way to get this done would be to either have a 12 month lease in place and a deposit for 2 months rent or simply pay to get a 1007 rent schedule appraisal done that can give the lender the assumed rent amount for that property.

Please note that if you have a rent estimate of $10,000 a month and your mortgage is $2,000 a month you won’t be able to count additional income, you can just offset that full mortgage liability.

I hope that helps! Please reach out if you want help running rent estimates compared to mortgage costs!