Tuesday, August 24, 2010

Does having a roommate effect the amount of a mortgage?

I am looking into buying a condo. I will have a roommate who will be paying half of the bills and I am wondering if this would effect the amount of the loan I can get or would they look at my financial information only? The mortgage would be in my name only.Does having a roommate effect the amount of a mortgage?
The mortgage amount is determined by the the down payment, the interest rate and the amount financed.. Ones roommate has no bearing on the loan.Does having a roommate effect the amount of a mortgage?
If the mortgage is in your name only, I would assume that they would only look at your income and financial info. However, there is a place on most loan applications where you can list other sources of income - ie rent from a roommate - and they will take that into consideration. However, I wouldn't count on that helping you too much as a roommate could move out or fail to pay his bills - it's not like court ordered child support or something.

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