If I’ve never rented property to someone before as a landlord, and I’m considering buying a home and using some or all of it as a rental property, am I able to use the expected rental income on the home I want to buy? If not, how many years of “landlord experience” do I need in order to apply rental income toward my mortgage?

Yes, you can you use rental income to qualify for a loan, but the rules vary depending on the mortgage product:

• Fannie Mae (Conventional): You do not need prior landlord experience to use 75% of the expected rental income from a lease to qualify for a mortgage. ​
• Freddie Mac (Conventional): Typically requires a two-year history of managing rental properties to use 75% of rental income for qualification. ​
  
• FHA: Does not require prior landlord experience to use 75% of the expected rental income, provided the income is documented appropriately. ​
• USDA: Generally does not allow the use of anticipated rental income from the subject property to qualify for a mortgage. ​
• VA: Typically does not consider future rental income for qualification, unless the borrower has a documented history of managing rental properties. ​

Want to know if rental income can help you qualify? Connect with a mortgage expert today to explore your options and find the right loan for your situation.