Mortgage Grapevine

FHA Question.... "Boarder" Income..... Any Help Please?

I am trying to use "Boarder" income on an FHA deal. This is what I was told and shown:

Boarder Income – FHA guidelines allow boarder income to be used in qualifying in certain circumstances.

Rental income from boarders is acceptable if the boarders are related by blood, marriage, or law. The rental income may be considered effective income if shown on the borrower’s tax returns.

**Now, does the boarder have to be on the Application? What is the "Boarder" is the wife, but does not have a SSN, so no other debts and may not be a legal citizen for that matter, can I not use the income if she is living there and it is shown on the Tax returns?

Just need insight here....
by 4BDNLVE August 26, 2008 12:00 AM

You are kidding right?

The boarder is the borrower´s wife and she is paying the husband money to live with him AND the husband is claiming this income on his Federal Income Tax returns??????

I don´t believe it.

Anyway, NO the boarder can not be on the loan application and take title to the property.
by Professor Dom August 26, 2008 12:00 AM

4BDNLVE - dude, you need some training. You are not getting it in the shop where you work.

Find a shop that will train you ´cause this one is going to get you in trouble at some point.

by Just a broker August 26, 2008 12:00 AM

Prof Dom/Just a Broker...
Let me try to clarify:

The Wife is not on NOR is to be on title of the Loan. However, she works and gets paid under the table. So I am trying to find out how I can use the income for the file, as she does contribute to the household?

What is the definition of "Boarder"? Someone who "rents" a room or someone that contibutes to the household? OR?
by 4BDNLVE August 26, 2008 12:00 AM


So you are saying I can charge my wife rent. If that is correct please post your number so you can explain it to her!
by dead eye August 26, 2008 12:00 AM

Let me put it to you in simple terms.
The wife-spouse-lover-mother of the children of the borrower CAN NOT be a boarder.
by Professor Dom August 26, 2008 12:00 AM

I know dead eye. I thought the same thing, it´s just that, you know...Her "fees" would surpass the rent.

So I´m just keeping my mouth shut.
by Kenny The Rooster August 26, 2008 12:00 AM

4BDNLVE - I´m telling ya´, you need to get the hell out of that place and find one that will train you.

The questions you ask are a sure sign that you are not even getting the very basics in training.

by Just a broker August 26, 2008 12:00 AM

I would like to see the tax return.
by Snapper August 26, 2008 12:00 AM

I would like to see the wife!! She has to be desparate and the husband is holding her hostage because she is probably an illegal alien.
by Professor Dom August 26, 2008 12:00 AM


FHA isn´t subprime. People actually read the story you put out there for them, and trying to mince words to the point of absurdity by claiming she´s a ´boarder´ is just a lie. The overall picture has to make sense, and that makes no sense whatsoever.

What you CAN do is go back and get the wife to file her taxes for the last two years, suck up the payment if there is going to be one, and do things LEGIT. That is the ONLY way to fly with FHA...do you think that going for a GOVERNMENT loan with folks who´ve clearly cheated the GOVERNMENT out of revenues, and then pulling a Johnny Cochrane about her residential ´status´ is going to fly?

Now if he claimed her as a dependent on HIS taxes at the same time she was working under the table, and if she´s making/made enough money to tax, then they´re screwed because they´d both have to refile and pay and that´s just ugly. But if she only makes a little bit and they can/have filed separately, you´ve at least got a path to follow out of the thorns.

by TheGoblinKing August 26, 2008 12:00 AM


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