Subject Property Rental Income FAQ

Unlike several other competitor systems where the users have multiple places to enter subject rent (in REO and income sections) causing confusion & inconsistencies, LendingPad streamlines this data entry for subject property rental income (applicable when the subject property is "Investment" purpose or "2-4 unit" property) to one location - in the "Proposed Housing Expense" section.  

LendingPad will take subject rental income data from the "Terms and Mortgage" → "Proposed Housing Expense" → "Gross Rent" field as shown in Figure 1 below.  This field is flexible for users to enter - it can be 100% or 75% of the rent per required lending guidelines.  The resulting subject net income or expense will auto-calculate and auto-populate under "Borrowers" → "Incomes" → "Subject Net Cash".  See Figure 2.  This number can be positive or negative. 

If "Subject Net Cash" is positive, it will be added as income in the DTI calculation.  If "Subject Net Cash" is negative, it will be added as an expense in DTI calculation.  For DTI calculation, mouse over " i " info icon next to the "Income and "Expense" lines to see the breakdown.  See Figure 3.  

Reference:  LendingPad aligns this with Fannie Mae guidance as posted in Selling Guide referenced here:  https://www.fanniemae.com/content/guide/selling/b3/3.5/02.html .  Typically regardless of the property is a primary, second home, or investment, DO/DU will ignore numbers entered in the REO section once the "Subject" flag is checked.

Figure 1.  

Figure 2

Figure 3