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Registered: ‎11-30-2012
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Proof of rent? We rent from a relative, pay with cash...

Is rental verification always required for an FHA loan? My wife and I rent from a family member and pay them in cash monthly. 

 

Is rental verification always a requirement and how would we go about providing proof? 

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Re: Proof of rent? We rent from a relative, pay with cash...


Mike_B03 wrote:

Is rental verification always required for an FHA loan? My wife and I rent from a family member and pay them in cash monthly. 

 

Is rental verification always a requirement and how would we go about providing proof? 


It's hard to proof, unless you relative paying tax on it. Chances are slim if it was a cash deal.

 

If you relative is paying tax on the rental income, you can use that document from relative to provide as proof.

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12/19/2013, $100k+ Available Credit. Total Util: 0-1%
Regular Contributor
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Registered: ‎08-13-2012
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Re: Proof of rent? We rent from a relative, pay with cash...

We actually lived with my parents before we bought our house and they didn't have a problem with that. I had to write a letter explaining that we lived with them and that I paid for all the groceries in the house and gave them some money for utilities and stuff but that was all. No problems at all.

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Re: Proof of rent? We rent from a relative, pay with cash...


deg757 wrote:

We actually lived with my parents before we bought our house and they didn't have a problem with that. I had to write a letter explaining that we lived with them and that I paid for all the groceries in the house and gave them some money for utilities and stuff but that was all. No problems at all.


That is exactly the same reason when we got the first morgage.

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12/19/2013, $100k+ Available Credit. Total Util: 0-1%
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Registered: ‎04-26-2012
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Re: Proof of rent? We rent from a relative, pay with cash...

I have this same issue although I have been living with a BF for 8 years and giving him cash for utilities and such. 

 if it went back several months where I withdrew the same amount out of my account in cash, that would suffice. The problem is I stopped doing that 2 months ago and am now trying to buy.. Will a letter be fine? 

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Registered: ‎03-22-2012
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Re: Proof of rent? We rent from a relative, pay with cash...

I think the degree or amount of rental verification depends on your scores. The closer the scores are to the minimum required scores the more thorough the lo or broker. When I applied my mid score was 719. They only asked me if I rented, my land lord's name, and the rent amount. You should probably tell your loan officer the exact situation and ask them what you will need based on your situation.



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