Using rental income to qualify for next purchase

[Eric Andersen]

Hi there,

I purchased a primary residence (duplex) last year and have been living in one of the units while renting the other. I want to rent out both units soon and use the income to help pre qualify. I spoke with one lender who said they only account for 75% of the rent against the mortgage. Is this normal and standard across most lenders?

For instance, total rent is $4000 and total mortgage with escrow is $3000. They would see this as a wash and not count the additional $1000 as more income due to potential vacancy. This is also with 1 year leases on the properties.

Thanks,
Eric