If you currently own rental property we might be able to use income derived from that property in order to qualify for your home loan.  While there are several mitigating factors depending upon each loan program, the general rule of thumb for documenting rental income is shown below.

Documenting Rental Income

1) Last 2 year’s federal tax returns including all schedules showing the rental income received.

OR

2) If you have purchased the rental property and have not yet had opportunity to claim income for it, we can typically use a copy of the 1-year lease that you have on the property for qualifying purposes.

OR

3)  If you there is rental income on the property you are purchasing we will need copies of the 1-year leases.

If you need the rental income on the subject property (the house you are buying) in order to qualify, you will need to demonstrate that you have been a landlord for at least the last 2 years.

Are you looking for mortgage loan in Minneapolis or St. Paul?  Give me a call and I’m glad to help!  I typically go over all of the documentation  necessary at the point of application in order to ensure a smooth loan process.