Any change to rental income percentage?

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    Hi, everyone. I just had a FHA 203k loan specialist tell me that the rental income percentage allowed had dropped from 75% to 50% due to COVID… does anyone know if that is true for NACA/BOA?


    Hello netnuevo,

    I’m not sure if you are confusing a NACA loan with an FHA 203k loan, if the loan specialist fed you a line to try and take your business away from NACA (you’d be surprised how much that happens) or what. The fact is that the rental income allowance is still 75% just as it always has been.

    Just for those who may be new and don’t know to what we are referring, when buying a multi-unit property (up to four units) through the NACA program, 75% of the projected rental income from the other units you don’t live in can be applied toward figuring your affordable monthly payment.

    Tim Trumble
    Online Operations, NACA


    Hi, Tim, thank you for the reply. It is such a relief to hear that the percentage has not changed; I was really alarmed when I first heard that it had changed for FHA loans.

    I had actually reached out to the 203k loan specialist myself when I started to get impatient with NACA, but the 4% interest rate (with PMI), the 3.5% down payment, and only 50% of the rental income allowed, there was just no comparison with NACA’s purchase program.

    Thanks again,


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