Is there any way rent-by-the-room income can be counted for owner-occupied SFH mortgage qualification?

Also, if the house has an ADU, can the ADU's or the main house's rental income count for qualification?

Thanks!

I believe FHA is the only loan that allow for Boarder income. Conventional loans wont count it. The ADU should be just a standard lease agreement to count it, because its a separate unit from the main living space.

Originally posted by @Jason Warren :

Is there any way rent-by-the-room income can be counted for owner-occupied SFH mortgage qualification?

Also, if the house has an ADU, can the ADU's or the main house's rental income count for qualification?

Thanks!

There are rare cases where an existing (think: >12 months) boarder can have their contribution included, otherwise no. Only time I've personally used it, she was my borrower and he was her live-in boyfriend, but she was also an accountant, so you better believe she could actually document her receipt of rent from him (she also knew he had poor credit and an eviction, so really she was hedging against that, not really thinking of mortgage stuff). Other than that, I've never encountered anyone that could support their claims with the necessary documentation. 

If people could just make up that they intend to rent all rooms out in a single family home, except for "their" spot in the garage, to juice up their "mortgage qualifying" income, we'd be effectively right back at stated income. 

@Chris Mason and @Kevin Romines ,

Thanks for the responses! In regards to the boarder rules, I currently rent a 2 bedroom apartment, which I qualified for alone and have had a friend subletting the second bedroom for over 12 months. If he was to come with me and provide/fill out the required documentation, would he be considered a boarder for the loan application?

Also, it looks like the Fannie Mae HomeReady mortgage also allows boarder and ADU income

Originally posted by @Jason Warren :

@Chris Mason and @Kevin Romines ,

Thanks for the responses! In regards to the boarder rules, I currently rent a 2 bedroom apartment, which I qualified for alone and have had a friend subletting the second bedroom for over 12 months. If he was to come with me and provide/fill out the required documentation, would he be considered a boarder for the loan application?

Also, it looks like the Fannie Mae HomeReady mortgage also allows boarder and ADU income

 Yup. FNMA is going to want to see your boarder's rent checks. Note that HomeReady has income limits.