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Roommate Income On Mortgage Application?

REISomerville profile photo
  • Friday, October 22, 2004 @ 05:44 AM EDT
  • 6 Comments

Is their a bank that will count income from roommates in a mortgage refinance application?

I own a 3 family, and get income from 2 other units, plus income from roommates in the unit I live in. I can document this income (leases and copies of checks).

When I purchased (April 2004), I got a lousy rate partially because the roommate income wasn't counted in my ratios. That's 1,000 of income! Now that the income isn't speculative, will a bank count it?

Thanks!

Comments(6)

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    Devlon21st October, 2004

    What is your rate?

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    REISomerville21st October, 2004

    5.375 on a 3 Year ARM

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    myfrogger21st October, 2004

    Depending on your credit and when this was, that isn't that bad of rate.

    I would talk to a mortgage broker to see how you can the roommates to count. I don't see why you can't use 75% of the rental income in the application.

    Do you report the roommate's rent on your taxes? This is probably the deciding factor.

    GOOD LUCK

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    REISomerville21st October, 2004

    5 3/8th is not great for *3 Year ARM* as far as I know, though I could be wrong. This was done in April 2004. Washington Mutual today told me their *5* year ARM rate is gave me a rate is 4.75, Suntrust told me its 4 7/8. 3 Year ARM rates should be quite low

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    joemac124121st October, 2004

    ARM rates on a single family, owner occupied may be really low, but 2/3 of your place is investment property (the mortgage people might say 100%). That rate is pretty good I'd say. Wait till you get 5 or six mortgages in one year and are happy to see figures in the 7-8% range!!!

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    InActive_Account22nd October, 2004

    Quote:
    On 2004-10-21 16:49, REISomerville wrote:
    Washington Mutual today told me their *5* year ARM rate is gave me a rate is 4.75, Suntrust told me its 4 7/8. 3 Year ARM rates should be quite low


    Did they have all of the needed info to give you a real rate quote? Or did you just ask what the ARM rates were?

    Did they know that it was a 3 family, Your credit score, equity and your Debt to income?

    Also did you ask how many points they would want for those rates?

    Just looked on the WaMu site 1.25 points 3 unit in CA 5 year ARM returned rate 5.250% APR 4.577%

    2.125 points gives a rate 4.625% APR 4.529%

    0 points rate 5.625% APR 4.720%

    But those are at 80% LTV.

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