Income from boarders in the borrower’s principal residence or second home is not considered acceptable stable income with the exception of the following:
- When a borrower with disabilities receives rental income from a live-in personal assistant, whether or not that individual is a relative of the borrower, the rental payments can be considered as acceptable stable income in an amount up to 30% of the total gross income that is used to qualify the borrower for the mortgage loan. Personal assistants typically are paid by Medicaid Waiver funds and include room and board, from which rental payments are made to the borrower.
- The HomeReady mortgage eligibility requirements include an additional exception. See B5-6-02, HomeReady Mortgage Underwriting Methods and Requirements.
The following table provides verification requirements for income from boarders.
|✓||Verification of Income from Boarders|
|Obtain documentation of the boarder’s history of shared residency (such as a copy of a driver’s license, bills, bank statements, or W-2 forms) that shows the boarder’s address as being the same as the borrower’s address.|
|Obtain documentation of the boarder’s rental payments for the most recent 12 months.|
For additional information, see B3-3.1-09, Other Sources of Income.