Can I qualify for a mortgage if I receive rental income from an accessory dwelling unit (ADU) in Oregon?

@ronaldo_von  Yes, it's possible to qualify for a mortgage in Oregon if you receive rental income from an accessory dwelling unit (ADU). However, there are several factors and considerations that lenders typically evaluate when assessing your eligibility:

1. Rental Income Verification: Lenders may consider a percentage of the rental income from the ADU when calculating your overall income for mortgage qualification purposes. They usually require documentation, such as a lease agreement or rental history, to verify the rental income.
2. Debt-to-Income Ratio (DTI): Lenders evaluate your DTI ratio, which compares your monthly income to your monthly debt obligations. They'll include your primary housing payment (including potential rental income from the ADU) along with other debts. The rental income can help improve your DTI ratio and increase your borrowing capacity.
3. Rental Income History: Lenders typically prefer a history of consistent rental income from the ADU. If the ADU is newly constructed and doesn't have a rental history, lenders might be more conservative in considering that income for loan qualification.
4. ADU Legal Status: The ADU must comply with local zoning laws, building codes, and permitting requirements. Lenders might require proof that the unit is legally permitted and meets all local regulations before considering its rental income.
5. Appraisal and Property Value: The presence of an income-generating ADU could potentially increase the property's appraised value, which may positively impact the loan approval process.
6. Reserves and Down Payment: Lenders might require larger reserves or a higher down payment if you're using rental income from the ADU to qualify, as they may perceive this income as less stable than primary income sources.

It's crucial to discuss your specific situation with a mortgage professional or loan officer in Oregon. They can provide tailored guidance based on your financial circumstances and the property in question. They'll also help you understand how rental income from an ADU might factor into your mortgage qualification and what documentation would be required to support this income source.

@ronaldo_von 

Yes, you may be able to qualify for a mortgage based on the rental income from an ADU in Oregon. Lenders typically accept rental income as part of your overall income when assessing your mortgage eligibility. However, there are several factors to consider:

1. Documentation: You'll need to provide documentation of the rental income, such as lease agreements or rental history, to verify the amount you receive.
2. Debt-to-Income Ratio: The rental income will be factored into your debt-to-income ratio, which is the percentage of your income that goes towards paying debts. This can help improve your ratio and increase your borrowing capacity.
3. Rental Income History: Lenders prefer to see a consistent history of rental income. If the ADU is new and doesn't have a rental history, lenders may be more cautious in considering this income.
4. Legal Status of ADU: The ADU must comply with local regulations and permitting requirements. Lenders will want assurance that the unit is legally permitted and meets all building codes.
5. Appraisal and Property Value: The presence of an income-generating ADU could increase the property's appraised value, which can be beneficial for loan approval.
6. Reserves and Down Payment: Lenders may require larger reserves or a higher down payment if you're using rental income to qualify. This is because rental income is considered less stable than primary income sources.

It's important to speak with a mortgage professional or a loan officer in Oregon to discuss your specific situation. They can provide personalized advice based on your financial situation and the property in question. They will guide you on how rental income from an ADU may impact your mortgage eligibility and the necessary paperwork to support this income source.