DTI and Renting by Room

[Cole Britting]

I know lenders can use 75% of the expected rents for small multifamily when calculating rental income for the DTI, but can they do the same if you plan on renting by the room for a SFR?

Also, how do lenders verify the expected rents? Do that have an appraiser pull comps and come up with a number? 

[Matt Nico]

Thanks for letting me know, Matt. Seems like it may be best for me to bring this up when trying to find the right lender for me. Thanks!

No worries man, Good luck. My market in Florida is probably much more flexible than you in NH. Most lenders end up counting the room rentals. 

My advice to you if you need to get a loan is to create a lease where everyone signs it but it allows them to break it individually with a 30 day notice or something like that. So your home will still be a rent by the room home, but to a lander they will see 1 lease only with everyone on it. Dont take my word for that legally though. Do your research for NH as to whats allowed.