Can I count rental income to qualify on conventional?
Yes, with documentation. Existing rental income from another property uses 75% of the lease amount (or market rent if no lease). Income from the subject investment property uses 75% of the projected rent in most cases. New investors without 2-year management history have stricter rules.
Plain-English explanation
Existing rental income on borrower's other properties: documented via Schedule E on tax returns plus current lease, counted at 75% of gross rent. Subject-property rental income: 75% of market rent (appraiser-determined) or current lease. Borrowers without two years of self-management experience may need to show projected income via lease + appraiser rent comps. PITI of the subject property is subtracted from rental income before applying to qualifying. Subject to Fannie/Freddie guidelines.
What can change the answer?
Down payment, reserves, rental income calculation, multi-financed-property reserve rules, and investment LLPAs all stack to drive pricing.
Want the real answer for your conventional file?
Conventional guidelines are the rule. Your credit, income, DTI, PMI, LLPAs, and Florida payment math are what decide the actual answer.
More conventional questions on Investment Property
Educational only. Conventional loan guidelines, lender overlays, rates, fees, PMI, LLPAs, and underwriting requirements can change. Final eligibility depends on full underwriting review.