Posted: Mon Dec 29, 2008 1:30 am Post subject: VA Loan Income Question
I bought a townhome with an FHA loan 1 year ago. I want to lease the townhome I currently live in and buy a home nearby using a VA loan. Does the money I would get from the lease agreement on the townhome count as income to qualify for a loan through the VA? Thanks!! _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
As far as I know, in case of VA loan, the rent received from investment properties which is owned by the borrower may be used. But the rental income is subject to the proper documentation. Income from roommates, in a single-family property to be occupied as the borrower's primary residence is not accepted as an income. Moreover you should also note that the rental income is calculated by calculating 75% of the gross rents received minus any mortgage payments paid for the property.
Thanks. _________________ Good is the Enemy of Great.
Billy Joe Bob Guest
Posted: Mon Dec 29, 2008 2:53 pm Post subject: VA Loan Income Question
Okay, I wasn't sure as the townhome is currently my primary residence, so I am not currently receiving rental income. Once I move to the other home, the townhouse would be leased. Thanks! _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
You should also note that rental income will be considered if you can show two years of tax returns filed on that income. This is a major documentation that you will have to show the lender. _________________ Procrastination is the enemy of your financial success
Niicss
