Freddie loosening their guildlines regarding rental income?

6 Replies

My lender told me today:  "In October Freddie is changing their guidelines that even though you have no rental income history, we CAN use the rental income which we have not been able to do for a few years. "

Can anyone confirm?  Sorry if this is a repeat, but I could not find...

Thanks, Andy

Hi @Andy Ferrell ,

This sounds really interesting!  I'm sorry I can't help answer myself, but I will be interested to see if anyone confirms this!  Thanks for posting.

I've not heard this yet. i've only heard fannie saying they'll allow an easier conversion of your primary residence to an investment property.

If you've bought a rental home within the year, before you've claimed them on your tax returns, Fannie lets you use 75% of the market rents on the rental market survey with the appraisal. Don't know if that helps your situation at all or not.

I found it in their last communication to lenders here:

Page 2:

Rental income

Effective for Mortgages with Settlement Dates on or after October 26, 2015, we are removing the requirement that the Borrower must have a two-year history of managing Investment Properties to use the income from a subject Investment Property or other Investment Properties owned by the Borrower for qualifying purposes...

Ahh nicely done. Great info.. thanks

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here