Updated 9 months ago on . Most recent reply
Income from property considered when applying for loan as primary residence
When purchasing a small multi family property as a primary residence. Does the bank take into consideration the income from the other units? Wanting to use a FHA loan but will likely do a in house loan with a bank.
Looking to purchase a duplex, triplex or fourplex in Panama City and do short term rentals for summer months and long term through the winter.
Most Popular Reply
Yes. Typically 75% of rental income can be applied towards your DTI for qualification. Most banks don't really know how to do that because they cater to SFH owner-occupants. If you find someone giving you confused looks, seek a mortgage broker that helps investors.
I'm not so sure how they would calculate income from short-term rentals. I have no experience there. On long-term rentals the bank likes to see signed leases which clearly you can't have with STR. Ask your lender how they handle it.