Do you need to know the documentation requirements for different types of loans and products offered by Freddie Mac? Download the document matrix pdf, a comprehensive. Reimbursement of incurred expenses will be made by Freddie Mac upon receipt of a completed Form 104, Loan and Real Estate Owned (REO) Expenses and Income. Use of these worksheets is optional. Many assume that full rental income or maybe 75% of the rental may be counted. Either way, counting rental income on a departing residence can be tricky. Additional requirements apply for reserves, calculating monthly housing expense-to-income ratios, use of rental income in qualifying, rent loss insurance, and others. Resources Rental income from the borrower’s 1-unit primary residence may not be used to qualify the borrower unless it meets the requirements in Guide Section 5306. (See B3-3. Rental Income from a Departing Residence Can Make or Break a Purchase. Rental Income from a Departing Residence Can Make or Break a Purchase. Rental Income – Lease Options. The most popular VA, FHA, USDA, and conventional (Fannie Mae and Freddie Mac) loan programs vary widely in their rules- ranging from requiring two years of income to be reported on schedule E of the tax return to counting 100% right away. 3: Rental income generated from an ADU on a subject 1-unit Primary Residence; 5306. Loan Product Advisor combines the Net Monthly Rental Income of all the properties entered. Refer to adu rental income requirements in guide section 5306. (If the borrower also receives alimony or. Lenders may disregard this requirement on refinance loan casefiles created prior to Apr. Many assume that full rental income or maybe 75% of the rental may be counted. citizens. Maintaining seller/servicer eligibility At the direction of the Federal Housing Finance Agency and in collaboration with Freddie Mac, we are modifying ourNovember 2019 Freddie Mac Learning Page 2 ULDD Tips 1 Table 1: 1-unit, Primary Residence or Second Home If. The lender must establish a history of property management experience by obtaining one of the following: The borrower’s most recent signed federal income tax return, including Schedules 1 and E. If the Net Monthly Rental Income is a “breakeven” amount, the user must enter either $0. For more information on this guideline change, Please see the Fannie Mae Selling Guide. and conventional (Fannie Mae and Freddie Mac) loan programs. Learn how to handle rental income, reserves, and liabilities for your borrowers who own multiple. S. The borrower instead occupies the home or one of the units as his or her primary. In order to count the rental income, a 12-month lease must be provided, and most lenders even require proof of the first month’s rent or security deposit. Many assume that full rental income or maybe 75% of the rental may be counted. housing market. Click to Begin. The Rental Income section is optional. Back to top. 3. Additionally. and conventional (Fannie Mae and Freddie Mac) loan programs. Either way, counting rental income on a departing residence can be tricky. the borrower is not using rental income from the applicable property to qualify. This overall value is, in turn, included in the borrower Total. In order to count the rental income, a 12-month lease must be provided, and most lenders even require proof of the first month's rent or security deposit. We’ve been listening to your feedback and are excited to share the newest version of the Single-Family Seller/Servicer Guide. 4(a)iii – Rental Income when property is placed in service as a rental property in the current calendar year obtain: Lease AND:. 06/01/22 F92-1 . Loan Product Advisor combines the Net Monthly Rental Income of all the properties entered. 4000. The above also applies to Freddie Mac LP Conventional loans and is not a change from previous LP guidelines. Yet, each loan program treats this new income differently. 8% to 4. Rental income is an acceptable source of stable income if it can be established that the income is likely to continue. 1% (Exhibit 4a) and the number of leased rental listings increased from. The lender can override DU’s calculation by entering the Net Monthly. com is privately funded and is not a government agency. 1-08, Rental Income, B3-4. 1, 2020. The new, user friendly Seller/Servicer Guide will make it significantly easier for you and your team to find, understand and share critical information. Any portion of the borrower's rental income from their one-unit primary residence that exceeds 30 percent of the borrower's total income cannot be used to qualify the borrower. Rental income guidelines when buying a new home and counting new rental on a departing residence varies among. Form 104, Loan and Real Estate Owned (REO) Expenses and Income submission (06/30/15)• Rental income Updates to rental income requirements. Rental income guidelines when buying a new home and counting new rental on a departing residence varies among. 4 and Chapter 5302 are met. The most popular VA, FHA, USDA, and conventional (Fannie Mae and Freddie Mac) loan programs vary widely in their rules- ranging from requiring two years of income to be reported on schedule E of the tax return to counting 100% right away. 1 II A. Rents at these properties are generally not subsidized or subject to government. Learn more about our business and our role in the nation’s housing market. 2. Additionally. 6 million mortgages on single-family owner-occupiedThe new, user friendly Seller/Servicer Guide will make it significantly easier for you and your team to find, understand and share critical information. and conventional (Fannie Mae and Freddie Mac) loan programs. 2. Avg. Rental Income from a Departing Residence Can Make or Break a Purchase. 01 or $-0. R. Conventional – Freddie Mac. Self-employed borrowers Allows less than 24-month history of self-employment and one year of personal and business tax returns if certain criteria are met. 5306. Differences in Calculating Rental Income from a Departure Property and Borrower Impacts. • rental income fdoes not own a principal residence, andThe new, user friendly Seller/Servicer Guide will make it significantly easier for you and your team to find, understand and share critical information. Either way, counting rental income on a departing residence can be tricky. 3 and 4501. 1, may be used to qualify the Borrower without limitation “no” - Excess rental income cannot be added to the Borrower’s gross monthly qualifying income “yes”- Rental income may be used to qualify Differences in Calculating Rental Income from a Departure Property and Borrower Impacts. Effective with LPA runs on or after December 9, 2018, PennyMac is aligning with Freddie Mac’s release of the Income and Asset Validation Program. The lender can override DU’s calculation by entering the Net Monthly. Freddie Mac Departure Residence Rental Income. Scenario 2: The Financed UnitFreddie Mac Form 65 • Fannie Mae Form 1003. General Requirements for Documenting Rental Income (Subject and Non-Subject Property) If a borrower has a history of renting the subject or another property, generally the rental income will be reported on IRS Form 1040, Schedule E of the borrower’s personal tax returns or on Rental Real Estate Income and Expenses of a. Either way, counting rental income on a departing residence can be tricky. The most popular VA, FHA, USDA, and conventional (Fannie Mae and Freddie Mac) loan programs vary widely in their rules- ranging from requiring two years of income to be reported on schedule E of the tax return to counting 100% right away. Refinance Transaction owned in the prior year(s)1200: General Freddie Mac Policies; 1300: General Responsibilities of the Seller/Servicer; 1400: Electronic Transactions; 1500: Seller Master Agreements, other Pricing Identifier Terms and Guide Plus Additional Provisionsthe monthly rental income for qualifying purposes. This overall value is, in turn, included in the borrower Total. dollars is acceptable for the down payment, closing costs, and financial reserves provided Rental Income Updated documentation requirements for rental income used towards qualifying. Together with our analysis, AIMI offers investors a unique insight into. Follow along as we plan for the other potential costs you may experience. 6 /09) Page 2 of 8 Fannie Mae Form 1003 7/05 (rev. To add rental income from a departing residence to your qualifying income, you must meet two conditions. Instructions Instructions Page Single-Family Comparable Rent Schedule The lender uses this form to obtain the market rent for a conventional single-family investment property from the appraiser. Freddie Mac will purchase Mortgages that are. Each Apartments. 2018, Fannie Mae and Freddie Mac published an updated Uniform Underwriting and Transmittal Summary (Form 1008). 4: Rental income from a 2- to 4-unit Primary Residence, subject 1- to 4-unit Investment Property and non-subject Investment Property; Chapter 5307: Asset Qualification SourcesFor primary residences with more than one unit, enter the gross monthly rental income for each non-owner occupied unit as indicated on the signed lease (s) for the mortgaged premises, If the number of units being financed is 3, enter the rental income for the 2 non-owner-occupied units. Rental income guidelines when buying a new home and counting new rental on a departing residence varies among. Many assume that full rental income or maybe 75% of the rental may be counted. Freddie Mac Single-Family Seller/Servicer Guide 08/09/17, effective 03/01/19 Bulletin 2018-13 F92-1 Form 92 . Borrower Types. Updated quarterly, the Index combines three market factors to present a value that can be compared to prior time periods. The 15-year fixed rate averaged 4. Obtain documentation of the boarder’s history of shared residency (such as a copy of a driver’s license, bills, bank statements, or W-2 forms) that shows the boarder’s address as being the same as the borrower’s address. • Qualifying rental income cannot. • rental income fdoes not own a principal residence, and The new, user friendly Seller/Servicer Guide will make it significantly easier for you and your team to find, understand and share critical information. 3 approvals, reserves are per the DU. 01 or $-0. Six months' reserves for the following: a two- to four-unit principal residence transaction, an investment property transaction, and. Many assume that full rental income or maybe 75% of the rental may be counted. Departure Income FHA, VA, Fannie, and Freddie. Assisted Living Residence (05/11/10) c. Either way, counting rental income on a departing residence can be tricky. The allowable grace period for late payment, if any. Either way, counting rental income on a departing residence can be tricky. Many assume that full rental income or maybe 75% of the rental may be counted. dollars. Understanding what you can afford. The borrower must own a primary residence to use rental income to qualify when purchasing a new rental property; and;. Many assume that full rental income or maybe 75% of the rental may be counted. Rental Income from an accessory dwelling unit may be considered for a subject 1-unit primary residence, subject 1- unit investment property and non-subject investment. The rental income must be documented with a copy of the fully. E. Report this post Report Report. If the mortgaged property owned by the borrower is a current principal residence converting to investment use, the borrower must be qualified in accordance. 9(a) for use of rental income generated from the Borrower’s 1-unit Primary Residence securing a Home Possible ® Mortgage. 0. top Freddie Mac Rental Income Matrix Rental income may be used in qualifying the borrower(s) provided that the requirements of Guide Section 5306. 2 How Freddie Mac Supports Homeownership and Rental Markets3 In 2020, Freddie Mac purchased more than 3. Again, the new twist is the needed documented equity of at least 30 percent in the existing property. Bulletin 2022-11 Rev. Either way, counting rental income on a departing residence can be tricky. For qualifying, the full mortgage payment plus any HOA. Use the following resources as a reference for documenting your Loan Product Advisor loans. If the mortgaged property owned by the borrower is a current principal residence converting to investment use, the borrower must be qualified in accordance with, but not limited to, the policies in topics B3-3. Many assume that full rental income or maybe 75% of the rental may be counted. Freddie Mac. 1 adds, “The Mortgagee must calculate the Rental Income by averaging the amount shown on Schedule E. and conventional (Fannie Mae and Freddie Mac) loan programs. Fannie Mae guidelines only allow for 75% of the rental income on departing residence be counted as qualifying income. E. If the rental income is derived from the subject property, the property must be one of the following: a two- to four-unit principal residence property in which the borrower occupies one of the units, or;منشور Tammy Butler, Master CMB, LSS Black Belt Tammy Butler, Master CMB, LSS Black Belt Publisher-Mortgage Currentcy -CEO-Fair Lending DiversityTammy Butler, Master CMB, LSS Black Belt’s Post Tammy Butler, Master CMB, LSS Black Belt Publisher-Mortgage Currentcy -CEO-Fair Lending DiversityTammy Butler, Master CMB, LSS Black Belt’s Post Tammy Butler, Master CMB, LSS Black Belt Publisher-Mortgage Currentcy -CEO-Fair Lending DiversityIn Single-Family Seller/Servicer Guide (Guide) Bulletin 2021-21 we are announcing a cap structure on the sale of mortgages secured by second homes and/or investment properties. The lender can override DU’s calculation by entering the Net Monthly. 1 II A. *. Renting a home involves more than paying the monthly rent. The reason you don’t subtract the PITI when the rental income is from the primary is the borrower must always be able. Business Assets. 5306. ACE eligibility in Loan Product AdvisorDo you need to know the guidelines for converting a primary residence to an investment property? Fannie Mae provides a comprehensive document that covers the eligibility, underwriting, and documentation requirements for this scenario. and conventional (Fannie Mae and Freddie Mac) loan programs. Current Residence Status & Rental Income. Rental income from live-in aide residing in a 1-unit Primary Residence. 00, DU will calculate it using this formula: (Gross rental income multiplied by 75%) minus property PITIA expense. Jun 21, 2019. Please take a few minutes to watch a short training video. Apr 9, 2019. , rental income from a source where a lease is not utilized) to support evolving housing industry trends in the rental market. com is privately funded and is not a government agency. Freddie Mac Single-Family Seller/Servicer Guide 08/09/17, effective 03/01/19 Bulletin 2018-13 F92-1 Form 92 . Usually determined by an appraisal. Originally, Appendix Q set the standards for considering a consumer’s monthly debts and income. and conventional (Fannie Mae and Freddie Mac) loan programs. Rents received less than 24 months do not represent a stable continued source of income for repayment income due to lack of. When entering rental income from an ADU on a subject 1-unit primary residence, sellers should select AccessoryUnitIncome under the Income Type data point (ID #258) as detailed in the Loan Product Advisor ® (LPA SM) v5. The focus here is on the math: Using A Lease. 1 01, General Information on Project StandardsRental income guidelines when buying a new home and counting new rental on a departing residence varies among. You must ensure that: the residential nature of any Property. Comprehensive PDF that contains all chapters of the Guide as of the last published Guide Bulletin with Guide updates. 38%, 6 basis points higher than last week. Note: If not using rental income to qualify,. Guide Section 5306. For example: If homeowner rents out their departing residence for $2,000 per month and their total departing housing payment (principal, interest, taxes, insurance, HOA) is $2000 per month, they. 4 for additional information about income calculation requirements and guidance. and conventional (Fannie Mae and Freddie Mac) loan programs. 1c(iii) – Rental Income *FHLMC 5306. The borrower’s rental payment history must be documented for the most recent consecutive 12-month period. Principal residence conversion – aka “departure residence” – guidelines were intended to be temporary. Effective 1/2021. 3 and 5102. (The lender may obtain this form for the purpose of reporting gross monthly rent at delivery. Selling: This segment includes requirements applicable to originating, underwriting, and selling eligible Mortgages (Series 4000 through 6000). FHANewsBlog. Primary residence PITIA $1,700. Rental income generated from an ADU on a subject 1-unit Primary Residence. If the mortgaged property owned by the borrower is. But, it doesn't include payroll. Jun 21, 2019. On the departing residence, if you use Fannie you should only need a copy of the lease for the new tenant. and conventional (Fannie Mae and Freddie Mac) loan programs. - Subtract monthly mortgage payment for converted property. Virtual currency that has been exchanged into U. DU loan casefiles: DU will determine the reserve requirements based on the following: Two months' reserves for a second home transaction. Requirements. In order to count the rental income, a 12-month lease must be provided, and most lenders even require proof of the first month's rent or security deposit. Rental income guidelines when buying a new home and counting new rental on a departing residence varies among. and conventional (Fannie Mae and Freddie Mac) loan programs. Many assume that full rental income or maybe 75% of the rental may be counted. Schedule E should reflect rental income received for any property and Fair Rental Days of 365; If the property has been owned for at least one. Manually underwritten loans: The minimum required reserves are documented in the Eligibility Matrix . Does not exceed the greater of the Fannie Mae or Freddie Mac rate for 30 year fixed rate conventional loans, and;. Six months' reserves for the following: a two- to four-unit principal residence transaction, an investment property transaction, and. and conventional (Fannie Mae and Freddie Mac) loan programs. Borrower must qualify for both mortgage payments; Reserves required based on Freddie Mac automated underwriting findings. In Dec. Back to top. Keyboard shortcuts PREV. 580-619. 00, DU will calculate it using this formula: (Gross rental income multiplied by 75%) minus property PITIA expense. FHA 1-unit. and conventional (Fannie Mae and Freddie Mac) loan programs. 2: Rental income from live-in aide residing in a 1-unit Primary Residence; 5306. The borrower must be listed as an owner of the account and the account must be verified in accordance with B3-4. When buying another primary residence, VA loans allow the buyer to count up to 100% of the new rental income on the departing residence. Rental income guidelines when buying a new home and counting new rental on a departing residence varies among. If the Net Monthly Rental Income is a “breakeven” amount, the user must enter either $0. There are two relevant provisions of this law for property owners of multifamily rental properties (defined as properties with five or more units) and their tenants: A forbearance program established for multifamily rental properties with federally-backed mortgage loans, including loans owned by Fannie Mae or Freddie Mac (the Enterprises);. Second Home Requirements. For loan casefiles underwritten through DU, the maximum allowable DTI ratio is. Payment on any installment debt secured by virtual currency must be included in the debt-to-income ratio calculation. g. In Single-Family Seller/Servicer Guide (Guide) Bulletin 2021-21 we are announcing a cap structure on the sale of mortgages secured by second homes and/or investment properties. For Fannie Mae, qualifying primary residence loans are those with an LTV within the range listed onRental income is an acceptable source of stable income if it can be established that the income is likely to continue. Rental income guidelines when buying a new home and counting new rental on a departing residence varies among. Fannie Mae and Freddie Mac Make 2015 Guideline Changes from What Is Income?Rental income guidelines when buying a new home and counting new rental on a departing residence varies among. These new rental income requirements go into effect on December 7th, 2019. A way that Fannie and Freddie could combat “buy and bail” buyers who ditched their old home the minute they closed on the new one. Guide Home. Loan Estimate Explainer; Nov 29, 2022 7:31:00 PM. Reining in Reverse Occupancy. Additionally. For rental income requirements, see Single-Family Seller/Servicer. DU loan casefiles: DU will determine the reserve requirements based on the following: Two months’ reserves for a second home transaction. and conventional (Fannie Mae and Freddie Mac) loan programs. Additionally. 0. and conventional (Fannie Mae and Freddie Mac) loan programs. an existing investment property or a current principal residence converting to investment use, the borrower must be qualified in accordance with, but not limited to, the policies in topics B3-3. FHA 2-unit. Rental Income – Lease Options . Subtract the monthly payment amount from the net rental income. exceptions to the exclusion of rental income from a principal residence being vacated by a borrower. Calculating Rent-to-Own Credits Towards Down Payment & Closing Costs Fannie Mae, Freddie Mac & FHA permit rent credits to be used towards a down payment and…Freddie Mac Form 65 • Fannie Mae Form 1003. Note: For loan casefiles underwritten through DU, when using the option of reducing the borrower’s monthly qualifying income by the alimony or separate maintenance payment, the lender must enter the amount of the monthly obligation as a negative alimony or separate maintenance income amount. Rental Income on the Property You Want to Purchase. Rental income generated from an ADU was not permitted for consideration towards a loan, except for in the case of Home Possible mortgages or when the rental income was paid by a living aid residing with the borrower. For rental income requirements, see Single-Family Seller/Servicer. 1 adds, “The Mortgagee must calculate the Rental Income by averaging the amount shown on Schedule E. How future rental income can help you buy an investment property. The most popular VA, FHA, USDA, and conventional (Fannie Mae and Freddie Mac) loan programs vary widely in their rules- ranging from requiring two years of income to be reported on schedule E of the tax return to counting 100% right away. (This is referred to as "Monthly Market Rent" on the Form 1007. If Net Monthly Rental Income is not entered or is $0. Rental income guidelines when buying a new home and counting new rental on a departing residence varies among. E. Either way, counting rental income on a departing residence can be tricky. Either way, counting rental income on a departing residence can be tricky. See all 92 apartments for rent near Camosun College Lansdowne Campus - Victoria, BC (University). and conventional (Fannie Mae and Freddie Mac) loan programs. Many assume that full rental income or maybe 75% of the rental may be counted. Fannie Mae just announced a MAJOR guideline change for homeowners who want to convert their principle residence to an investment property and buy another primary home. Principal residence conversion – aka “departure residence” – guidelines were intended to be temporary. The Fannie Mae update is specific to. A recent announcement made on October 2 nd, 2019 has updated rental income guidelines on all Fannie Mae conventional investment property. Enter the Expected Net Monthly Rental Income(the net amount after expenses) the borrower expects to receive on the property being purchased. If the rental income is derived from the subject property, the property must be one of the following: a two- to four-unit principal residence property in which the borrower occupies one of the units, or;Contact the Freddie Mac Renter Help Line. • Rental income from a 1-unit primary residence must be provided by a person who: • DU loan casefiles: DU will determine the reserve requirements based on the following: Two months' reserves for a second home transaction. You will also only be able to use 75% of the rental amount as income or whatever amount covers the mortgage (if the borrower does not. 5306. Zoom to fit Accessible text. a Analyzing the Stability ofFreddie Mac also removed the requirement that limited the net rental income used for qualifying to 30% of the borrower’s monthly qualifying income if the borrower did not have a minimum of 1-year history of rental property management; Rental Income Documentation . 4: Rental income from a 2- to 4-unit Primary Residence, subject 1- to 4-unit Investment Property and non-subject Investment Property; Chapter 5307: Asset Qualification Sources5850 San Felipe Suite #500, Houston, TX 77057 281-398-6111. citizen borrowers. Did we finance your apartment?. the borrower is not using rental income from the applicable property to qualify. and conventional (Fannie Mae and Freddie Mac) loan programs. Rental income guidelines when buying a new home and counting new rental on a departing residence varies among. Either way, counting rental income on a departing residence can be tricky. Conversion of Primary Residence (Departing Residence) Currently, when a borrower has a departing residence being converted to an investment property, the borrower must have an additional two or six months reserves, and a minimum 30% equity in the departing residence in order to use rental income. Back to top. Many assume that full rental income or maybe 75% of the rental may be counted. A way that Fannie and Freddie could combat “buy and bail” buyers who ditched their old home the minute they closed on the new one. Form 92 . See Reporting of Gross Monthly Rent in B3-3. Back to top. This applies to all Multifamily Conventional Loans with a tenant age restriction of 55+ years, regardless if the age restriction is from a zoning/deed restriction or the owner’s marketing decision. 5306. Many assume that full rental income or maybe 75% of the rental may be counted. If income source has less than a 2-year history, provide a written analysis justifying your determination that the qualifying income is stable. Many assume that full rental income or maybe 75% of the rental may be counted. The lender must verify the borrower's income in accordance with Section B3–3. S. Back to top. Reserves for Each Rental Property. Rental income guidelines when buying a new home and counting new rental on a departing residence varies among. Six months' reserves for the following: a two- to four-unit principal residence transaction, an investment property transaction, and. Either way, counting rental income on a departing residence can be tricky. Net Rental Income Calculations – Schedule E . 1- TO 4-UNIT PRIMARY RESIDENCE NET RENTAL INCOME CALCULATION – SCHEDULE E1 Refinance Transaction owned in the prior year(s) IRS 1040 Schedule E – Supplemental Income and Loss . Introduction This topic provides information on qualifying a borrower’s rental income, including: Associated Policies Eligible Properties Ineligible Properties General. Rental income guidelines when buying a new home and counting new rental on a departing residence varies among. Additionally. The most popular VA, FHA, USDA, and conventional (Fannie Mae and Freddie Mac) loan programs vary widely in their rules- ranging from requiring two years of income to be reported on schedule E of the tax return to counting 100% right away. Continued affordability in the multifamily market, with 96 percent of all the rental units we financed affordable to low and moderate-income families earning at or below 120 percent area median income. 9(a) are met. • 2-4 Primary Residence: Rental income in an amount not exceeding PITIA of the subject property can be added to the borrower's gross income • Investment Property: Rental income can only be used to offset PITIA (excess income cannot be applied to the borrower's gross income) Departing Residence N/A Current primary residence is being Share this answer. 06 Data Specifications. 5306. 63. Additionally. The following constitutes Freddie Mac’s 2020 Annual Housing Activities Report to Congress and FHFA under section 307(f) and FHFA regulations at 12 C. Section 5303. See additional requirements in Guide Section 4201. 5306. Rental income from a 1-2 unit primary residence can account for up to 30% of qualifying income. a. Chapter 5201: Credit Assessment with Loan Product Advisor®. Either way, counting rental income on a departing residence can be tricky. Many assume that full rental income or maybe 75% of the rental may be counted. Many assume that full rental income or maybe 75% of the rental may be counted. Home price. and conventional (Fannie Mae and Freddie Mac) loan programs. If the property is a rental and has a negative net rental income value, use a "-" to indicate a negative amount in the Net Monthly Rental Income field. Chapter 4, Section E HUD 4155. Here’s how that could help you qualify. and conventional (Fannie Mae and Freddie Mac) loan programs. For qualifying, the full mortgage payment plus any HOA. Many assume that full rental income or maybe 75% of the rental may be counted. Primary Residence. = Use resulting amount as monthly qualifying income. 3. Download PDF. Jun 21, 2019. FHA. Note: For loan casefiles underwritten through DU, when using the option of reducing the borrower’s monthly qualifying income by the alimony or separate maintenance payment, the lender must enter the amount of the monthly obligation as a negative alimony or separate maintenance income amount. and conventional (Fannie Mae and Freddie Mac) loan programs. if not included in Monthly Mortgage Payment For 2-4 Unit Primary or Investment Property Monthly Rental Income For LENDER to calculate: Net Monthly Rental Income $ $ $ $ 3c. All other requirements of Debts Paid by Others in B3-6-05, Monthly Debt Obligations must be met. IF APPLICABLE, Complete Information for Additional Property Does not applyYou must also live in one of the units as your primary residence. and conventional (Fannie Mae and Freddie Mac) loan programs. Either way, counting rental income on a departing residence can be tricky. Copies Original, plus one. In order to count the rental income, a 12-month lease must be provided, and most lenders even require proof of the first month's rent or security deposit. A borrower must qualify for the mortgage without considering any rental income from the ADU. Payment on any installment debt secured by virtual currency must be included in the debt-to-income ratio calculation. B3-3. Entering ADU rental income in Loan Product Advisor. Rental income overview. Rental income guidelines when buying a new home and counting new rental on a departing residence varies among. Many assume that full rental income or maybe 75% of the rental may be counted. Either way, counting rental income on a departing residence can be tricky. The Freddie Mac changes announced in Bulletins 2019-05 and 2019-07 impact Conventional and Home Possible products.