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K. NON BORROWER INCOME

Income from a non-borrower who also occupies the property may be used to support payments under all loss mitigation options with the following restrictions:

• Occupancy must be fully verified 
• Servicer should conduct a financial review of the entire household income and expenses to determine if there is sufficient surplus income to pay back the arrearages 
• Servicers should consult their legal counsel to determine if the asset is eligible for loss mitigation since the Non-Borrower is not on the original mortgage
• When a borrower uses a non-borrower household member’s income in qualifying for a loss mitigation home retention option and that non-borrower household member will be included on the modified note, the non-borrower household member must sign all required loss mitigation documentation.

Additional Resource: https://www.rd.usda.gov/files/3555-1chapter18.pdf© RHS HB-1-3555 SFH Guaranteed Loan Program Technical Handbook