How Lenders Calculate Your Rental Income

Private money loans in Santa Rosa, CA | Sonoma County | Hard Money

There’s no doubt about it. Cash flow is a good thing.

This article will explain how a mortgage lender or bank may view your rental income when you are applying for a new mortgage loan.

To keep things simple, I am using an example of a rental property with a monthly gross rental income of $1,000.

(Rental income before any expenses.)

Qualifying for a Loan When Rental Income is Not Reported on Your Tax Returns

Rental Income







Do you own more than one property?

If you have applied for a traditional mortgage loan in the past 5 years, you may be aware of the technicalities of using income from rental properties to qualify for your new loan.

This can be a challenge for both purchase and refinance transactions.