I have a nontraditional situation. Customer lives in a $600K home. Has a $350K mortgage which is current. Is 74 years old. Numbers work for the FA the Income is derived strictly from home rentals (3). Average monthly income is $2200. Renters pay cash monthly but some cases pay two & three months in advance. Customer has a rental agreement for each of the properties. Has good history of paying taxes and insurance on primary as well as rentals. What are the acceptable forms for proof of income? Cash flow through bank account? She does not file income tax so no history to track. What else do you recommend?
In order to use income on rentals borrower would have had to have filed them on his tax returns. If he just acquired them since last tax filing that is one thing and we can use the lease, however, if he has owned them for a while they must be reporting on taxes to use income.