Expert: Levi Brooks - 4/13/2008

Question
Is it possible to use someone's rent to you as income for purchasing a house? cannot afford a bit house on that. Ie: I make 21000 a year with good credit.  I live with my daughter who makes good money but has lousy credit. She pays 1200 a month of all living expenses while I pay 800. Can I buy a house figuring in her 1200 a month as income.

Answer
It depends on the lending laws of your state.  If she was a stranger, that money should qualify as rental income, but since she is related to you, the lenders may not consider that as income.

Go speak directly to a few lenders and see what they can do for you.  You may be able to both sign for a loan and between her income and your credit qualify for the home you are looking for.