Financing in Swampscott>Question Details

fgranger168, Home Buyer in Swampscott, MA

can my son buy a house to live in and rent part of it to other students and use the rental income to qualify for an FHA home purchase loan?

Asked by fgranger168, Swampscott, MA Fri Mar 22, 2013

Help the community by answering this question:

Answers

4
Richard Shapiro’s answer
Boarder income is generally not allowed. If your sone were to purchase a multifamily property and rent out the other units, then the income could be considered.

If your son is a full time student, you could be on the loan as a non owner occupied co-borrower. Your incoome, credit and assets could be factored into the qualifying.

You also could purchase the home as an investment property and lease it to your son and fellow students. Then you have nice asset to help you reduce your tax liability. Talk to your CPA about the joys of owning investment property.
1 vote Thank Flag Link Fri Mar 22, 2013
Are you saying he would only qualify for the loan assuming he has this additional future rental income?

Then no. Have him call a mortgage broker to find out what he can qualify for given his current income, qualifications and credit.
1 vote Thank Flag Link Fri Mar 22, 2013
not a single family, but a multi, possibly.
0 votes Thank Flag Link Fri Mar 22, 2013
As a mortgage professional Richard has done a nice job outlining your options.
0 votes Thank Flag Link Fri Mar 22, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer