Can i use a rental income towards a second mortgage loan?

Rental income is part of your overall debt-to-income ratio. It isn't necessarily used "towards" anything specifically, just a part of the picture. You will likely need tax returns to prove this income and the calculation is a bit complex, so it is best to have a mortgage professional review your info. If you have just obtained the property, some lenders may accept the signed lease.

Matthew, We don't do 2nd mortgages, only 1st mortgages. There is a specific formula we are required to use to determine the net rental incomeand it is based on your schedule E of your tax returns. I'm not sure how your bank calculates this, as they use different guidelines. Have you considered refinancing your 1st mortgage and cashing out? If you would like to discuss this further with me please feel free to call me a 727-460-9418. Best Regards, Linda

Matthew,why don't you give me a call to go over your situation. We lend in Florida856 324 3608

Matthew,I'm not sure I 100% understand your question. I don't know if you are asking if you can get a 2nd mortgage on your existing primary residence or if you are asking if you can get a loan for another home and renting out your current home.If you have rental properties and are asking if you can use that income for qualifying purposes the answer is yes. If the rental income is on your tax returns in the form of a schedule E, then whatever is on your returns for income will be used.If you are asking if you can rent your place out and use that income to offset the purchase of another home then that situation gets a little more complicated. Because of buy and bail guidelines, there are certain guidelines you must meet.1st - You must have 25% equity in your current residence.2nd - You have to have a rental agreement in place with first and last month's rent deposited into your account as well as a security deposit.I hope I was able to answer your question, feel free to contact me for further assistance. Joshua Lerette - Sales ManagerCarrington Mortgage Services, Inc.727-488-7355Joshua.Lerette@Carringtonms.com

As long as the income is stated on tax returns you should be good to go.

Not really sure I understand your question.. Are you looking to purchase another home or are you looking to get a 2nd loan against a home you already have a first lien on?? Lenders will only consider rental income if you have a history of receiving rental income.. if you don't then no. But this guideline is regarding first liens.. if your looking to get a 2nd mortgage, then each lender who does 2nd lien position loans will have their own way of calculating income.. some might allow it, but my guess is that most wont.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Yes you can use rental income from your tax returns. I would have an experienced loan officer look at your returns to see if the income is needed.Melvin ListFlorida Mortgage Pro

Yes, typically it is 75% of your rental income.

Lenders use 75% of the income, and verify it by 2 years reporting on Schedule E of your 1040 tax return.

Yes... Lenders will look at your last two years of tax return, specifically Schedule E. We will see what you reported for rental income, see what you reported for expenses on the rental, subtract out your mortgage payments (if any), and whatever is left is usable for income. In MN and WI, visit www.JoeMetzler.com

As you see from the variety of answers, we need more info to correctly answer your question. Are you talking about an additional mortgage on your current home, or on a new home you want to buy? If a new home, will it be a rental - or are you asking if rental income from your current home can be counted in some way to buy a different home for yourself, or count the rental income from a rental property you want to buy? If you are talking about another home you want to buy, some of the answers also depend on whether you are buying locally, or relocating to another area. Treatment of rental income also will vary from lender to lender, and also will depend on what type of mortgage you will be using. So, give us more details and we can give you a better response.