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

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Mike_B03
Valued Contributor

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? 

Message 1 of 6
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armbenderc
Valued Contributor

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.

2013 Approvals: Discover IT - 3/1, Amex BCE - 3/4, CSP - 5/4, Barclay Ring - 6/12, BoA Privileges Cash - 6/27, Citi TY Preferred - 8/6, OCCU Duck - 11/4, USBank (Cash+) - 11/22, Wells Fargo - 12/21, Nordstrom - 12/29

12/19/2013, $100k+ Available Credit. Total Util: 0-1%
Message 2 of 6
deg757
Regular Contributor

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.

Starting scores 2/27/12 TU 605 EX 576 EQ 560
Current scores lender pull 9/6/12 TU 663 EX 629 EQ 645
Closed on our first home 10/26/2012!
Message 3 of 6
armbenderc
Valued Contributor

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.

2013 Approvals: Discover IT - 3/1, Amex BCE - 3/4, CSP - 5/4, Barclay Ring - 6/12, BoA Privileges Cash - 6/27, Citi TY Preferred - 8/6, OCCU Duck - 11/4, USBank (Cash+) - 11/22, Wells Fargo - 12/21, Nordstrom - 12/29

12/19/2013, $100k+ Available Credit. Total Util: 0-1%
Message 4 of 6
Lasardo
Established Contributor

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? 

CS 728- 01/13 from 554-12/11
Goal: 800
Message 5 of 6
natashahol
Valued Member

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.



Starting Score:FICO EQ 620 TU Fako 595 EX FAKO 628
Current Score: Lender Pull 10/2012 EX 719, EQ 704, TU 690

BOA $8500 I CitiForward $6500 I Chase Freedom $3000 I Discover More $1500 I Kohls $1000 I Orchard Bank $400
App free since 12/8/2012.. holding out til 11/2013
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