A lease, market-rent schedule and property history can give different answers; the selected investor's rules decide which evidence counts. This guide is educational. The applicable lender, VA or investor rules and the facts of your transaction control the outcome.
Prepare both the agreement and property facts
Have the current lease, expected use, appraisal details and a description of occupancy ready. Some programs specify how to handle an existing tenant, a vacant property or a rental conversion. A signed lease alone may not determine the qualifying amount.
Reconcile the rent figure before quoting a ratio
Compare the proposed rent with any market-rent figure and the investor's instructions for the lower of two figures or adjustments. Keep taxes, insurance and association dues current. A ratio produced from an ineligible rent figure is only an arithmetic exercise, not a financing decision.
Frequently asked question
Can I use projected rent for a vacant property?
That depends on the investor's written rental-income and appraisal rules for the exact transaction.
7th Level Mortgage LLC · NMLS #1003861. Programs and eligibility depend on qualification and current guidelines.
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