Rent from Roommates - How to handle in obtaining loan?

[Christian (Whitehead) Scott]

Lenders, Bankers, Mortgage Brokers:

How would you advise....I'm doing a version of House Hacking. I have 2 friends renting rooms in my home. They currently make deposits into my bank account or write a check each month for rent & splitting the electricity. I do not report this as income.

As I shop for conventional loans, would you recommend to continue this method of payment or should I have the payments made in cash in order to avoid any red flags that may arise due to the "unidentified" deposits?

Many thanks folks! Really appreciate the BP Community!

[Charlie Fitzgerald]

Actually, there are lenders and Liam programs that will allow this income if you a.) have a rental contract and b.) report the income on your taxes. It's called border income. If you don't want to use the income for DTI purposes in obtaining your loan, I would still have written agreements in place with your roommates and I would still have them pay me with a check or money order and deposit them accordingly.