© 2018 RHS HB-1-3555 SFH Guaranteed Loan Program Technical Handbook
K. 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 obligations to determine if there is sufficient 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 nonborrower household member will be included on the modified note, the non-borrower household member must sign all required loss mitigation documentation.