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RENTAL INCOME WITHOUT 2 YEAR TAX RETURN.

I own 2 properties , the property I purchased over 10 years ago by myself as my primary resident and last year March 2012 I purchased another property with my brother jointed ownership , I rent out my previous property .Now I wanted to refinance my new property I purchased last year by myself, can I use my rental income? I don't rental history 2 years tax return because I just rent out my property in May last years.Thanks. by hiep_h_184_253 from North Chicago, Illinois. Mar 8th 2013 Reply


Scott Weinstein (Mymortgageguyscott)
#86 ranked lender in Illinois - 37 contributions

Hi there. If you can demonstrate that you have at least 30% equity in the rental property, have a current valid lease, and can show proof you have received a security deposit from your renter, then yes, you can use that income. Feel free to contact me with any additional questions. Good luck!Scott

Mar 8th 2013
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Mary Chris Gallo (MaryChrisGallo)
#46 ranked lender in Minnesota - 116 contributions

As I understand it, you would need to find a portfolio lender to help you with that scenario. Fannie and Freddie would require a two year history (like any other source of income) of rental income in order to use that income in your qualifying ratios.

Mar 8th 2013
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Barclay Butler (Barclay)
#83 ranked lender in Illinois - 89 contributions

Just like Mymortg said you need 30% equity in the house, with a lease. Most likely if you are refinancing you owner occupied home you will not need reserves. We can go to high ratios on a Conv. refi. Please call or email if you like. 224-420-9990, bbutler@barclaybutlerfinancial.com

Mar 8th 2013
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Joe Shamie (Joe Shamie)
#4 ranked lender in New Jersey - 1,412 contributions

Fannie and Freddie require a 2 year history of receivng rental income to use it for qualifying

Mar 8th 2013
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