What is the FHA way to calculate rental income?
Saturday, November 21st, 2009 at
3:01 pm
What is the FHA way or formula to calculate rental income on a property which has a negative amortization loan. Borrower is purchasing a SFR, but will rent out her current three unit property of which 2 units are already rented. The rent of the vacated unit will be potential.
need help to find out FHA way to calculate for her rental income.
Tagged with: calculate • income • rental
Filed under: Uncategorized
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Rule of thumb is 75%. Unless she has a valid lease, use the same rent that the 2 units bring in. Add the 3, take 75% & see if it is negative or positive in relation to the payment. If negative it will be counted against her as a debt. Don’t be surprised if they as for tax returns to look at the real estate schedule.