Lease agreement underwriting

[stech786]

I'm buying 2nd home and will need my first home on rent to qualify. I do have lease agreement. It's with family member Will underwriter sees an issue with that? It's a legit lease, no fraud

[ShanetheMortgageMan]

With Fannie Mae financing there are no extra requirements if the lease is with a family member.  However, along with the signed lease agreement, you’ll still need to provide copies of the security deposit and/or first month's rent check along with proof of deposit.  An alternate option is to pay for a rent survey (it's an estimate of fair market rent that an appraiser completes).

If you are qualifying for an FHA loan then you have to provide evidence of receiving the security deposit and/or first month's rent check + you'll need to have 25% equity in your home (documented with an appraisal that'll also include a rent survey).

What type of loan are you planning on getting approved for?

[stech786]

Thank you!

it's a conventional loan. I do have security deposit as cashier check. I didn't get personal check as it would show person name etc

the loan officer hasn't asked me who is the tenant, but incase he asked 

[ShanetheMortgageMan]

You're welcome.

You'll need to provide the lease agreement which will list the tenants name on it, so it won't remain a mystery for long. 

Since you said it doesn't list their name on the cashier's check security deposit, I wouldn't be surprised if underwriting asks you to document that it was from the tenant as well.