FHA – Using Rental Income-Limited History- How do you count rental income when the tenant has not been paying long enough to be reported on the borrower’s tax returns.

Answer: FHA has a specific requirement for determining rental income that can be used for qualifying when there is a limited history of rental income. See the highlighted text below and specifically the equity requirement. Reference: 4000.1, II, A, 4, c, xii, (I) (3) Rental Income from Other Real Estate Holdings (TOTAL) (a) Standard: Rental Income from other real estate holdings […]

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