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One year Rental income to qualify for higher mortgage

I rented my house almost a year now and relocated to Virginia. I would like to buy a house including my rental income to qualify for higher mortgage. My credit score is above 750 and currently I can qualify for 300000.00 loan amount without including my rental income, but the house I found is 450000.00. So is there a possibility to get a higher loan?

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December 03 2012 - King St Metro-Eisenhower Ave
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 Clay, can you tell me how can I do that?

Get with a lender that follows FHA guidelines.
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December 03 2012
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Thanks, Johnny for your advice :)

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December 03 2012
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Clay, can you tell me how can I do that? I've talked Wells Fargo(my current lender) yesterday and they told me they require 2 years of rental income.

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December 03 2012
Hello 

Thank you for posting your question!

Generally speaking you will need a 2 year history as a proven landlord via your tax returns to use the rental income from your property to qualify.  
I may suggest a different approach to this as well.  I know of certain portfolio lenders which may give you an exception to this rule and meet you have way.  Depending on how long you have been renting the other home out you may get a lender to let you use the rental income to at least cancel out the property taxes and insurance.  This should lower your debt to income ratio and make it so you can afford a little more home.

I hope this helps.

Chris Perez - Real Estate Finance - San Francisco, CA
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December 03 2012
Use an FHA loan for the purchase and you can count a % of the rental income
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December 03 2012
Be careful not t stretch to far sometimes things happen beyond your control.
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December 03 2012

We would need more information to be able to tell you if your qualified for a higher mortgage.  Have you been pre-qualified by a loan officer?  Leslie, is correct though that rental income may be used if reported on Schedule E tax returns for two years.

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December 03 2012
You need a two year rental history to use rental income with most lenders.
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December 03 2012
 
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