Prequalification- how does it work with rental income?

Now I know I can use rental income (usually up to 75%) as income on a loan app providing I have rental/lease agreements that specify how much is coming in. Now what I don’t understand is how I could prequalify for a loan before I start shopping if I am relying a large part on how much money each property brings in to qualify for the loan. Or should I just assume that if the mortgage is say $1000 a month and the rents are $2000 they will qualify me no problem? ??? I guess stated income is a possibility but that’s just going to jack the interest rate up more. HELP!

Hi how are you? I just sent you an email.

Got your email and responded, thanks.

I have the same question, can either of you e-mail me? Thanks

Me too…


Basically you take your Gross Rental Income you receive and X .75% - Your Full Mortgage Payment = Your Net Rental Income…most the time it is negative. Ideally the negative Net should be on the Income side. The guidelines call for 25% to be like a maintenance cushion…wrote this fast, should make since :-\

ME 3 :wink:

I have subprime banks that will take 90% of the rental income and treat stated programs as full doc.


Email me your rates, something tells me it’s going to be a lot higher than I can get with conventional financing. I don’t see any problems getting financing when the time comes judging by what a few brokers have told me based on my situation, don’t think I’ll need a high interest subprime.