Monday, July 3, 2017
Does My Roommate’s Income Count Towards A Loan Modification?
A mortgage loan modification requires you to provide your income data to your lender. This is done by providing copies of paystubs and tax returns. The figures you provide need to include all of the income, from every source, that you have at your disposal. For married couples this means you need to provide proof of income for yourself and for your spouse. And if you are not married, but living with a partner who is also on the note and mortgage, their income information is also relevant. But there are other living arrangements, with a lot of young professionals opting to buy their first home and rent a room to a lifelong friend or other roommate. In those instances it is good to know if your roommate’s income is also taken into consideration when you try to have your mortgage modified.
Does your roommate’s income count when asking to have your mortgage loan modified? It depends. Here are some things to know:
• If your roommate is going to be a party to the modified loan, their income is relevant and should be provided. In fact, it will be required by the bank since the bank will ask for information about all parties who are financially obligated themselves for the mortgage loan.
• If your roommate is paying rent to you, then that rent can be counted as part of your income. This is not quite the same as including all of your roommate’s wages in your total income figure, but it does increase what you show you make.
Having a roommate is a great way to reduce your expenses, and if you are being paid by that roommate you need to count that rent as income. There are other circumstances where money you make outside of your job might be included in your total income figure, and we can help you determine what counts and what does not count. If you are looking to modify your mortgage and need to know how to calculate your income, let us help. We handle mortgage modification requests every day, and can handle yours also.
For more information about debt and mortgage modifications, call us today or reach us online at www.law-ri.com. We offer appointments at multiple locations for your convenience and can schedule a time to visit with you today.