When processing loan modifications one of the most important aspects is the amount of income coming in. Is it affordable? In most cases that lenders want to see that a homeowner can afford their monthly payment in order to offer them assistance. If someone has a rental property they want to see that it is affordable but they also want to see that there is additional income. Any investor with rental properties will tell you that a percentage of every years collections has to go toward maintenance, repairs, and many times covering some of the utilities.
Fannie Mae and Freddie Mac have taken it upon themselves to decide that amount for you. They are only account for 75% if the total rental income when counting the income towards a homeowners ability to pay. It is important to calculate all the details and we find that it is some of these important factors for our clients that can many times make or break a deal.