Owning a rental property can potentially help you qualify for another mortgage, whether you’re buying in Idaho Falls, Blackfoot, Pocatello, or elsewhere in East Idaho.
But rental income isn’t always as simple as saying:
“My tenant pays me $2,000 per month, so I have another $2,000 of income.”
Mortgage guidelines determine how much rental income you can use and what documentation is required.
Depending on the situation, that documentation could include things such as:
- A lease
- Tax returns
- An appraisal and rental schedule
- Proof of rent received
- Documentation of the property’s expenses
- History of property ownership or rental management
The rules can also change depending on whether you’re buying a new Idaho investment property, converting your current home into a rental, or already own established rental properties.
That’s exactly why loan programs matter.
Fannie Mae, Freddie Mac, FHA, and other mortgage programs don’t necessarily treat every rental-income scenario the same way.
The important part?
Don’t make decisions based on one guideline you saw online, or even something that worked on your last mortgage.
Rental-income guidelines evolve, and transaction details matter.
If rental income is part of your plan to buy your next home or grow your real estate portfolio in East Idaho, let’s review it before you make an offer.
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