How to Calculate Boarder Income

How to Calculate Boarder Income

Boarder income occurs when the borrower rents out a room in their principal residence or second home. Boarder income is not considered acceptable stable income, except:
  1. When a borrower with disabilities receives rental income from a live-in assistant.
  2. The rental payment may be considered income in an amount “up to” 30% of the total gross income used to qualify the borrower
  3. Verification of the income:
    1. Documentation of the boarders shared residency, and
    2. Documentation as proof of receipt of the rental payments for the most recent 12 months

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