Non-Occupant Borrower Income
DU will consider a non-occupant borrower’s income as qualifying income for a principal residence with certain loan-to value (LTV) ratio limitations.
For manually underwritten loans, the income from a non-occupant borrower may be considered as acceptable qualifying income. This income can offset certain weaknesses that may be in the occupant borrower’s loan application, such as limited income, financial reserves, or limited credit history. However, it may not be used to offset significant or recent instances of major derogatory credit in the occupant borrower’s credit history. The occupant borrower must still reasonably demonstrate a willingness to make the mortgage payments and maintain homeownership. If the income from a non-occupant borrower is used for qualifying, the LTV ratios are limited.
See B2-2-04, Guarantors, Co-Signers, or Non-Occupant Borrowers on the Subject Transaction, for information about the maximum LTV, CLTV, and HCLTV ratios that apply when non-occupant borrower income is used for qualifying purposes for both DU and manually underwritten loans.
For additional information, see B3-3.1-09, Other Sources of Income.