Blog / Down Payment / No “In-House” or “Boarder” Rent For Income, Unless Unit Is Legal

No “In-House” or “Boarder” Rent For Income, Unless Unit Is Legal

By Jay Voorhees

January 22, 2014 1 min read
    Young woman moving boxes out of a home

    Allowed Rental Income

    We were asked again recently if a homeowner could put a “boarder” or an “in-house” renter in her home to augment income for qualifying purposes. The answer is “no” in most cases.

    Lenders allow “in-house” rental income in some cases, but only if the income has appeared on the tax returns for one to two years.

    If income comes from a separate, legal unit (such as an in-law unit, or the other unit of a duplex), then lenders allow the rental income to be used for qualifying in all circumstances.

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