Guideline Update - LPA Freddie Mac (Rental Income)

2019-01-21 17:35
Guideline Update - LPA Freddie Mac
In regard to Freddie Mac Bulletins 2017-12 & 2018-19, CMAC Lending is updating our guidelines for All LPA Products,
effective with funding date on or after Feburary 1, 2019.
Rental income without a current primary residence
The Borrower must own a Primary Residence to use rental income to qualify when purchasing a new rental property.
One-year investment property management experience
Whether purchasing a new rental property or converting a Primary Residence to a rental property, if the Borrower does not have a minimum of one-year investment property management experience:
The rental income can only offset the principal, interest, taxes and insurance (PITI) of the rental property; and
Rental income exceeding the PITI cannot be added to the Borrower's gross monthly income to qualify.
Rental income documentation requirements
When using rental income, only borrower's most recent federal income tax return is required, unless stated otherwise in
Freddie Mac's guidelines.