Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
1y
How does your income = 3x rent account for car payments - which majority of tenants will make BEFORE they pay their rent (in most states cars, can be repossessed faster than tenant can be evicted!)?
Kansas City, MO · Member since 2021 · 27 posts · 1 vote
1y
Thank you for your question. The 3x of rent is a benchmark number used to compare gross income to rent. The screen also looks at credit history and previous payments made to landlords. These benchmarks help provide an acceptance score of the tenant's worthiness in sustaining ongoing rent payments. Underwriting is one of the most critical components in substantiating the income information provided. Car payments and other debt, and the way the tenant handled the debt, are also reflected in the tenant's credit score, which is also considered in the screen.