Question about FHA lending guidelines?? - Posted by Mike

Real Estate Investing Real Estate Financing
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Posted by Hugh James on December 31, 1999 at 12:20:54:

In most areas FHA underwriting allows an 85% credit of the projected rent to be used towards the borrowers bottom line as rental income. It used to be 95%, but they lowered it early last (1999) year.

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Question about FHA lending guidelines?? - Posted by Mike

Posted by Mike on December 30, 1999 at 21:10:20:

Hi.

I have a 2-unit bldg. that I am in the process of rehabbing. I’ve had a couple of buyers approach me that would probably qualify for FHA financing based on credit, but their income isn’t so great. I’m wondering if FHA will use rental income from one of the units as additional income for the buyer? I could easily get one of the units rented for $650/month. I know the lender will only take 75% of that as income, but will the bank use this money as projected income in the buyer’s financial statement?

Please advise.

Thanks.