Rental Property Income?

Question

Just over a 1 1/2 yrs ago I purchased my first home which I love. I am now thinking about relocating to another area for graduate school thus I would like to purchase a new home. If I wanted to rent this property and then include that income in my application for a new home loan, how could I go about doing this? Is there a certain amount of time that I must rent my home out before it can be considered income?

Answer 1

Your lender will want to see a signed lease and may only consider 75% of that as income.  They are worried about vacancy, repairs etc.

Remember, you will also have to list the expenses like taxes, insurance & water etc. against the rent for a true net income.

Answer 2

It is always income.   You use your income tax return to prove it.