Income derived from a rental property would be entered in which section of the URLA?

Income derived from a rental property is classified as a component of the borrower's overall income and would be entered in the section designated for Monthly income and combined housing expense information on the Uniform Residential Loan Application (URLA). This section specifically captures the various sources of income that a borrower receives on a monthly basis, including wages, salaries, bonuses, and rental income.

Including rental income in this section provides lenders with a comprehensive understanding of the borrower's financial situation, enabling them to assess the borrower's ability to repay the mortgage. By calculating the total income, lenders can more accurately evaluate the borrower's debt-to-income ratio, which is a critical metric in loan approval processes.

While employment information, assets and liabilities, and borrower information are all relevant to the loan application, they do not specifically address the ongoing income generated from rental properties, making the section for Monthly income and combined housing expense information the appropriate choice for capturing this type of income.