Evaluating & Calculating Rental Income in Florida

• Eligibility and underwriting
• Documenting rental income
• Calculation of rental income and loss
• Multiple financed properties

Are you using rental income to quality for a Florida mortgage? You need to document the gross rent for fannie mae and Freddie mac. If you need to use rental income to qualify you need to consider the source and the history. How long has this property been in service? What portion of the rental income can we use to qualify the borrower?

Source?

• 2-4 units Primary residence?  Purchase or refinance?
• Subject is a 1-4 Unit investment property. Purchase or Refinance?
• Non-subject investment property? They have other properties they using for investment property?
  NO border income or accessory units,
• How long has the property been owned or serviced?
• Schedule E
• Or if thy just purchased the property. We will use a lease and appraisal form.
• Appraisal for 1025 /72  and leases if available?
  Refinance check for 1025/72
• Leases
• Schedule E.

Seasonal rentals and second homes cannot be used as income. Rental income cannot be used if it’s identified as a second home. Subject property single family home cannot be used, border income is very specific and is generally ineligible and cannot be used for income from the unit they are occupying.

Appraisal for 1007 / Freddie 1000

You can use a lease to document income on a purchase transaction that the existing lease is transferred to the borrower or refinance tranaction.

Fanie and Feddie mac to verify rental income – New guidelines

Form 1007/1000 or 1025/72 must support he income reflected don’t he lease agreement. Evidence that the terms of the lease have gone into effect: 2 months’ bank statement,s copies of canceled checks or electronic transfers of rent payments, or a copy of the security de;oist and 1st months’ rent checks with proof of deposit.

Check the Tax for Schedule E for rental property income.

Current docs – Mortgage statements, homeowners insurance declaration, property tax bill, HOA statement.  Do interest search to find out if its a pud with HOA fee or not?

Calculating rental income