A borrower owns a duplex and lives in one unit while renting the other. The rental income is $1,200 per month, but the borrower has no rental history or lease agreement. How should this income be treated?
Correct Answer
B) The income cannot be used without a lease agreement and rental history
For rental income to be considered qualifying income, there must be documentation of rental history (typically through tax returns showing rental income) or a current lease agreement. Without either, the rental income cannot be used for qualification purposes under GSE guidelines.
Why This Is the Correct Answer
For rental income to be considered qualifying income, there must be documentation of rental history (typically through tax returns showing rental income) or a current lease agreement. Without either, the rental income cannot be used for qualification purposes under GSE guidelines.
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A loan officer receives an appraisal that values the property at $280,000, but the borrower needs $300,000 to qualify for the loan. The loan officer contacts the appraiser asking for a 'second look' at the comparables. This action is:
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