FHA Boarder Income Update: A New Opportunity for Buyers

Yesterday a new video on boarder income was shared, outlining changes that FHA has made to help more buyers qualify for home loans. By allowing boarder income to be more easily verified, this change is valuable for clients looking to maximize their purchasing power.

🔹 What’s Changed?

• Simpler Documentation – Payments from roommates or shared living expenses can now be verified with bank statements, checks, or deposit slips.

• Shorter Rental History Requirement – The rental history timeframe has been reduced from 24 to 12 months, requiring documentation for just nine of the most recent twelve months.

• Income Limits – Boarder income may not exceed 30% of the borrower’s qualifying income.

📌 Why This Matters for Agents

• Helps first-time buyers and move-up buyers who rely on shared living arrangements.

• Expands financing options for clients looking to increase their purchasing power.

• Creates an opportunity to co-brand and educate buyers through joint collaboration calls.

When Can We Use It?

While this change officially takes effect March 14, 2025, I can start applying the update immediately. That means now is the time to reach out to potential buyers who could benefit from this expanded qualification option.

I shared this video yesterday, and in case you missed it, I have included the link here. If you want to co-brand this video message and connect with potential buyers, reach out to get your own copy.