Mortgage Navigator • Conventional • Rental Income

Conventional Rental & Investment Income

Rental income is one of the easiest places to misuse a generic 75% rule. Property type, ownership history, tax returns and landlord experience all matter.

Build My Mortgage Game Plan Conventional Navigator

Explore rental income

Subject-property rental income

2–4 unit primaries and investment-property purchases/refis.

Schedule E rental income

Cash-flow analysis, add-backs and months in service.

Departing residence

Converting the old primary home to a rental.

New landlord / under 12 months

When positive rental income can only offset PITIA.

ADU rental income

Fannie's current 30% qualifying-income cap and transaction limits.

Short-term rental income

Tax-return history, fair-rental days and service interruptions.

When a lease can be used

Why a signed lease is not always acceptable.

Boarder income

Standard conventional vs. HomeReady exceptions.

Recent Fannie change: the rental-income section was updated September 2, 2026. The site uses that current structure, including property-management-experience limits and ADU rules.

Could the other agency solve this? Fannie Mae and Freddie Mac are not identical. If this scenario fails under one agency, compare the other agency's current rule and AUS result before assuming conventional financing is unavailable. A lender overlay is also different from an agency prohibition.

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.