On Jan. 13, HUD issued letter re rental income policy from boarders.
HUD issued Mortgagee Letter 2025-04 to implement flexibilities for documenting and calculating income from boarders of the subject property beyond the current standard.
Updates the borrower standards, documentation requirements, and calculations.
Rental Income from boarders may be considered effective income if the occupying borrower has a 12-month history and is currently receiving income from boarders.
Letter outlined the required documentation as well as calculation for effective income.
Effectiveness
The provisions of the mortgage's letter may be implemented immediately but must be implemented for FHA case numbers that are assigned on or after Mar. 14, 2025.
