Projected rental income for fha loan as a first time home buyer

4 Replies

Hi everyone! Im looking to finance a multifamily property with fha loan. I just wanted to know if projected rental income from subject property can be used as qualifying income or not for the first time home buyer. I talked to quicken loans about it they said it can be used only if you are not a first time home buyer according to fha guidelines. Im not sure if projected income will be used as a first time home buyer or not. Please let me know if quicken loans is right ?  Thanks in advance

@Haider Nazir

That would be an overlay for that lender. FHA allows you to use potential rental income on the other units;


  • Any net rental income from the subject property must be added to the borrower’s qualifying gross monthly income by applying 75% of the lesser of;
  • Fair Market Rent reported by the appraiser; or The rent reflected on the existing or proposed lease agreement.
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@Haider Nazir hey Haider, I’m looking at doing the same thing and I was also told by Rocket Mortgage (Quicken) that as a first time home buyer, I cannot use the projected rental income to qualify. I’m curious if you or anyone in this thread knows of lenders that do allow this option? Please let me know!