Mortgage Navigator • Conventional • Rental Income
New landlord / less than 12 months experience
A new investor may be able to use rent—but not necessarily as extra income above the property's payment.
Fannie current rule
When the borrower has less than 12 months of rental-property management experience, positive adjusted net rental income from the qualifying property can generally be used only to offset its PITIA. It cannot ordinarily create additional qualifying income above the housing payment.
Negative cash flow still counts
If the calculation is negative, the loss is included in DTI regardless of the borrower's lack of management history.
This is frequently missed: “75% of the rent exceeds the payment” does not necessarily mean the excess can be added to income for a first-time landlord.
Official guide baseline
Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide
Rental-income rules are transaction-, property-, ownership-history- and management-experience-specific. Current guide controls.