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Anonymous
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Income

I am planning on applying for a mortgage soon. Im the only person on the loan however I've lived with a family member for years and will continue to do so after closing. Can I use their income to qualify for a larger loan even though they wont be on mortgage?
Message 1 of 4
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ShanetheMortgageMan
Super Contributor

Re: Income


@Anonymous wrote:
I am planning on applying for a mortgage soon. Im the only person on the loan however I've lived with a family member for years and will continue to do so after closing. Can I use their income to qualify for a larger loan even though they wont be on mortgage?

The only way to use the income they receive is if they are on the mortgage with you.

 

However... if they have lived with you for at least 2 years, while paying you "boarder income" (rent), you've claimed it on your tax returns for the past 2 years, you are still currently receiving boarder income from them, and they sign a written agreement stating their intent to continue boarding with you... then with an FHA loan you can use the boarder income to qualify (conventional can use that type of income too, in special circumstances).

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 2 of 4
Anonymous
Not applicable

Re: Income

We just split the rent & utilities. No boarder income for tax purposes.

Darn i was hoping to add her income as household income. My daughter is a single mom so it makes sense to live together for financial reason & help take care of child.
Message 3 of 4
ShanetheMortgageMan
Super Contributor

Re: Income


@Anonymous wrote:
We just split the rent & utilities. No boarder income for tax purposes.

Darn i was hoping to add her income as household income. My daughter is a single mom so it makes sense to live together for financial reason & help take care of child.

Gotcha, it makes sense since all of the income would be used to pay the expenses anyway... but lenders want to see a well documented history in the way explained above. 

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
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