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Using rental income to qualify for FHA Loan

Can I use my rental income from my current owner-occupied 4-unit (income from other 3 units) to qualify for a FHA loan on a new primary home? My lender is telling me that I need a 75% LTV in order to use the income (Buy and Bail Guidelines). It is my understanding that the Buy and Bail Guidelines only apply if you are vacating a single unit and renting it out. However, I've lived in my 4-unit for 11 years and and can show tax returns for all 11 years showing my rental income on the other 3 units. 
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May 24 2013 - US
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what is the percentage of rental income that FHA will allow toward qualifying for a mortgage. I understand that conventional lenders allow 75%
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April 17
FHA will only insure one property as a primary residency.  Therefore
because you will no longer be living there, it is considered an investment property.

FHA would require that you have at least a 75% loan to value ratio on the propety you are vacating.
A current residential appraisal must be used to determine LTV compliance.

The only other times FHA allows a buyer to have two FHA mortgages is:
Relocation
Increase in family size
Vacating a jointly owned property
Non-occupying coborrower


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October 16 2013

Ed Valadez "Eddie V"

update on these answers----You  can use rental income from previous 3 rental units per tax returns.  However ther rent on the owner' s unit that is being vacated can only be used if you have 25% equity in that building.  Ed Valadez V.P. Mortgage Lending Guaratneed Rate.
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October 16 2013
You may use the rental income as it appears on your tax returns. You will not be able to use income for the unit you are vacating. You may want to look at using a different lender - Sam Sharp Senior VP of Mortgage Lending Guaranteed Rate
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May 26 2013
You are going to get different answer depending on who you ask. The future rents can used at the discretion of the Underwriter. There are some perimeters that have to follow, but I can assure you I have closed many many 1-4's using the future rents when the borrower had NO history of rental income.
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May 26 2013
Yes you can - Multi-Unit FHA deals are great.

[self promotion deleted by Zillow moderator. Please see our good Neighbor Policy for posting guidelines]
Rob Ross NMLS # 189110

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May 25 2013
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Just the existing income on the 3 units and not for the potential income on the 4th (once I vacate).

The Buy and Bail Guidelines seem not to cover this scenario, but only if I would be vacating a single-unit such as a condo, etc.
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May 25 2013
Are you asking if you can use the existing 3 unit's income or the additional POTENTIAL Income on the 4th once you vacate it? 

If it is the later, I dont see how they would allow that income since you do not have a track record of the 4th unit being rented.  

Have you checked your situated with another lender to confirm?
Good luck, 
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May 24 2013
 
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