Posted on: 03rd Jun, 2009 01:53 pm
I'm looking to purchase an investment/rental property (2-4 unit.) If I have to qualify for the loan using just my existing income, or do lenders consider the rental income of the property I'm looking to purchase?
For example: If I can afford a $100k property, but there's a but I want a property that's for sale for $300k, am I likely to be able to purchase it if the rental income is enough to cover the entire mortgage?
For example: If I can afford a $100k property, but there's a but I want a property that's for sale for $300k, am I likely to be able to purchase it if the rental income is enough to cover the entire mortgage?
honestly...if you qualify for $100K, the leap to $300K is far too large, even with rental income being taken into consideration. keep in mind that for conventional mortgages, you're limited to a maximum 4-family dwelling. the rental income is going to be used at a 75% rate, i.e. if rents equal $4000 monthly (total), you'd be given credit for $3000 monthly. if that plus your regular income would qualify you for the property you're interested in, then congratulations.
you'll want to consult with a loan officer throughout the process to be certain of your maximum qualifying range.
you'll want to consult with a loan officer throughout the process to be certain of your maximum qualifying range.
i said you ought to consult with a loan officer...please don't go to just any loan officer. you'll need to be able to rely on whoever it is for support, information and guidance - you need someone you can be confident in...not just someone who gives you platitudes.