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"Anticipated Income" from multi-family unit.. how do I find this number?

by yolanda421 from Tucumcari, New Mexico. Jun 20th 2016 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,727 contributions

More info needed.. but it sounds like your looking to purchase a multi family housing property and need the additional rental income to qualify.. if this is the scenario, then there's nothing for you to do.. the lender will order an appraisal and the appraiser will find the rental comparable's based on the property features.. They will not use any number you provide.. only the appraisers numbers.. realistically, your real estate agent can also find the rental comp's just to give you a ball park. Understand that I am only talking about "Conforming" loan guidelines.. (1 to 4 units, within the conforming loan limits of the lending program you are using). if you are getting a commercial loan, then that's a whole different ball game.. There are no standardized or "conforming" guidelines when it comes to commercial financing.. each lender that offers it, can make up their own rules.. so some might allow for rental income for qualifying, while others wont.. For this reason, I suggest you contact a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the larger lenders.. 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. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 NMLS# 226347

Jun 20th 2016
Larry Gray (lgray_312_247)
#595 ranked lender in California - 1,139 contributions

William Acres has informed you that the appraiser will verify what the acceptable rents are in the area to be applied towards qualifying you for a particular multi-family home in that area. I do like to find out from the listing agent what the rents currently are so you can get an idea of how you qualify now for purchasing the property prior to the appraisal.

Jun 20th 2016
Scott Fix (ScottFix)
#1346 ranked lender in California - 184 contributions

William is spot on! The appraiser will look at comparable properties, along with vacancy rates, current market value of rents in the given area etc to determine the properties value and "likely expectations" for rents collected, anticipated vacancy rate along with time vacant etc based on the given area. Definitely contact a local brokerage with a good reputation for sound loan advice, service and valuable accurate guidance with multi-unit property loans.

Jun 21st 2016
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