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Old 02-03-2012, 03:35 PM
 
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How long must I be vacated from a primary residence in order to use the income generated by renters as credible income for refinancing purposes?
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Old 02-03-2012, 05:56 PM
 
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Loan requirements vary by lender and type, but a general rule of thumb is that banks consider rental income at 66% of what you're netting for the rent.
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Old 02-04-2012, 03:50 PM
 
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A lot of mortgage companies (lenders) want 2 years of verifiable (income tax) rental income before they will consider it rental income in their income calculations.
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Old 02-05-2012, 08:11 AM
 
Location: MID ATLANTIC
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Fannie Mae defines a primary residence as any home you have occupied in the past 12 months.

When you are using rental income on a primary residence to qualify for a mortgage (to offset it's PITI), you must prove you have 30% equity. So, the answer is.....if you don't have the required equity, you must wait at least one year. That said, most lenders have overlays and want to see the rental on two years tax returns. However, there is an animal out there called "Fannie Direct" where small banks can go straight to the Fannie Mae window (and by-pass the typical secondary market) and follow Fannie guidelines.

One you have met the requirements on a former residence, and, can show you have 30% equity, you may use 75% of the rental income to offset the mortgage payment.
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