FHA – 203K Refinance-Rental Unit: Can a 203K rate/term refinance be used to renovate a unit of a 2-4 unit property, and can this rental income be counted to qualify?
Answer: FHA does not have any special provisions for calculating rental income on a 203K loan. The standard guidelines will apply and the rental income can be used per the policies below. Reference: (I)Â Rental Income (TOTAL) (1)Â Definition: Rental Income refers to income received or to be received from the subject Property or other real estate [...]