Qualifying using rental income from roommates

[Will Johnston]

Is it possible for a buyer to use the rental income that would be generated by roommates to qualify for a conventional mortgage?  This is obviously owner occupied with the intention to rent bedrooms to roommates.  In the past I've heard this was possible if the roommates sign leases indicating their intention to move in.

Thanks!
Will

[Benjamin Piecenski]

Hi, @Will Johnston

This is not technically classified as rental income, it is classified as boarder income.  To be able to qualify on boarder income, you must be using the Home Possible and can prove that they have lived with you for at least 12 months (with proof), as well as documents proving that he has been paying rent for 12 months (cancelled checks, receipts, etc).  Let me know if you have any questions