Rental Suites Increase Qualifying Income
In today’s market with stricter mortgage rules, a rental suite can make a huge difference when qualifying for a mortgage and knowing which lenders offer the biggest bang for your buck is even more important.
Different lenders allow different amounts of the rental income to be added into your qualifying income. Some lenders only allow 50% of the rental income to be used when qualifying for a mortgage, while others allow 80% and even 100%.
If a lender allows 50% of the rental income, and the rent is $1200 per month, this will increase the mortgage you qualify for by just over $40,000, at 80% it increases your mortgage qualifying by over $65,000, and at 100% it boosts it a whopping $84,000. How the different lenders calculate the rental income can make the difference between a yes or a no.
Let us help you get your mortgage application in front of the right lender for your situation. If you want to discuss your personal situation, please let me know, as knowledge is power and having the information will help you make a better decision.
Call Daryl French today at 250-470-8843.