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Cannot Use “In House” Rents for Income

If a property is zoned as a “Single Family Residence” and the buyer/borrower lives in the property, lenders will not allow any “rental income” from that property to be used for qualification purposes.

Many borrowers labor under the misconception that they can rent out a few rooms to help qualify for a mortgage. Though, unless they are renting out a “legal” 2nd unit or an in-law unit, no rent can be used.

Rental income from rooms inside a residence are known as “in house rents”.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167