Fannie Mae Change of Rules

[Dan Mackin]

Yesterday I was signing my closing papers for a refi on my primary and my mortgage broker mentioned that Fannie Mae has just changed their rules about 2 years minimum to count rental income.  He said they are now counting a signed lease as income even if you haven't been a landlord for 2 years.  He is still digging into the details of the change, but I wanted to see if anyone else has heard about this?

[Robert Sepulveda]

@Louis A.

 sorry for the delay in response. I get dirty looks on sunday if I'm on the computer. 

Your base income AND your income calculations for your lease properties are all included in your DTI calculation.

However, what's on your schedule E deductions can be added back as income in your total rental property worksheet (depreciation, taxes, insurance, interest). These can offset your total deductions to have the rental property take care of the debt service and carry as much of it's own weight as possible, when it comes to your DTI. Always talk to someone who knows their way around a schedule E and can give you the most credit toward your dti.