When purchasing a multi-unit property, FHA does not specify which unit can be used as rental income; however, the underwriter will review the unit sizes in comparison to the family size to determine if it makes sense.
Related Article Title: FHA – Qualifying Rental Income on 2-Unit Property: Does FHA specify that the smaller unit must be used when qualifying a borrower with rental income? Chart-Rental Income Requirements – All Agencies Answer: No. FHA does not require that the smaller unit be used for qualifying purposes. That said, expect an underwriter to […]