Section outline

  • General

    • 🗓️ Recorded: 8/26/2025
      ⏱️ Est. Time: 55 mins
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      Rental Income Calculation & Evaluation

      This presentation focuses on the specialized skills required for evaluating and calculating rental income for mortgage borrowers, covering eligibility, documentation, and various qualifying scenarios.

      What this session covers:

       
      Income Sourcing Lenders evaluate income from the subject property (primary or investment), non-subject investment properties, and accessory dwelling units (ADUs).
       
      Documentation Standards Standard documentation includes IRS Schedule E (for established rentals), fully executed lease agreements, and standardized appraisal forms such as 1007 or 1025.
       
      Qualifying History Requirements differ based on how long a property has been in service, ranging from tax returns for prior years to leases for new properties.
       
      Agency Guidelines Fannie Mae and Freddie Mac have specific restrictions based on a borrower's ownership history and documented property management experience.
       
      Multiple Property Ownership Borrowers can own up to 10 financed properties, with specific reserve requirements based on the number of properties and aggregate unpaid principal balance (UPB).
    • Related Document File PDF
       

      Presentation handout
      SEB resource manual
      Access our rental income analysis calculator

    • Quiz - Rental Income
      Students must
      Receive a grade
      Receive a passing grade

      Please take the quiz to pass the course.