Any change to rental income percentage?

Home Forums Purchase Program Any change to rental income percentage?

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  • #74543
    netnuevo
    Participant

    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?

    #74565
    TTrumble
    Member

    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

    #74570
    netnuevo
    Participant

    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,

    Stephanie

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