Does a roommate count towards my 2 year rental income requirement?

9 Replies

I have two roommates who are now living with me. I am curious if the income generated from this would require the 2 year rental income requirement that most banks require in order to count rental income in DTI ratios. As far as I understand, the income has to be reported on your tax return for at least two years.

Does this make any difference if I were to record and track the payments through a separate bank account just as I would with a regular rental?

I was just reading up on some of the standards and qualifications for using rental income. It's looks to me the the answer is no, If it is a one family home and also your primary residence.

But I'm not an expert, I'm still researching.

Every lender is different! That being said my lender said no! 

I pulled it off, but the underwriter asked a lot of questions.

Originally posted by @James Wise :

If you are reporting it as rental income on your taxes you should be able too.

If it is not reported on your taxes for at least 2 years they will not count it.

 That's kind of what I figured. It looks like now is a good time then!


If this was an investment property you could count income right away.  No 2 year waiting period.  I wrote a blog on this a couple of months ago which will understand how this works.

Since this is your owner occupied home no conventional lender could sell this to fannie or freddie.  So you would have to find a portfolio lender or private or HM.

I hope this helps. 

I second what @Shaun Weeks said.

Originally posted by @Shaun Weekes :


If this was an investment property you could count income right away.  No 2 year waiting period.  

So if I had acquired this current property in some way and was renting it out, I could then count this income (via conventional financing) towards my next income property ? But since this is my primary residence it does not count. Correct?

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