Borrower lives in a $600K home. Has a $350K mortgage which is current. Is 74 years old. Income is derived strictly from 3 rental properties. Average monthly income is $2200 from the rental properties. Renters pay cash monthly. What are the acceptable forms for proof of income?
To use income on rentals the borrower must have filed tax returns with Schedule E Rental Income. If the properties were acquired since last tax filing leases may be used. However, if the properties have been owned for a while they must be reporting on taxes to use income.