How to Use Roommate & Rental Income to Qualify for a Mortgage

Summary

---

Earn Your Leisure Podcast Summary

Episode: How to Use Roommate & Rental Income to Qualify for a Mortgage

Date: May 10, 2026
Hosts: Rashad Bilal, Troy Millings
Guest(s): Earnest, Trevor Shy

---

Episode Overview

This episode centers on creative strategies for leveraging roommate or rental income to qualify for a mortgage in the rapidly shifting real estate market. The hosts, along with expert guests, dissect how Fannie Mae’s guidelines allow “border income” (roommate or shared rental income) and income from accessory dwelling units (ADUs) to boost mortgage eligibility. With a focus on practical documentation, college graduate hacks, and optimizing living arrangements, the discussion offers actionable advice for aspiring homeowners and investors.

---

Key Discussion Points & Insights

1. Monetizing Your Home Beyond Traditional Leasing

• Swimming Pool Rentals:
  Rashad opens by explaining unconventional ways to monetize single-family homes, such as renting out backyard pools for events.
  Quote: “She rents out her backyard, her pool here in New York and it pays her mortgage for the year. Like, it’s incredible.” (Rashad, 02:49)
• Event-based home and pool rentals can net several hundred dollars per hour, effectively offsetting an owner’s mortgage.

2. Fannie Mae’s ‘Border Income’ and How to Use It

• Border Income Defined:
  Rental income from a roommate can count as qualifying income for a mortgage under Fannie Mae’s HomeReady program, if:
  • The borrower can document receiving it for 9 of the past 12 months.
  • Proper documentation (lease agreements, proof of payment) is maintained.
• Documentation Tips:
  • The roommate must be officially on the lease, and rent contributions should be documented (e.g., via Zelle, Cash App) with “rent” clear in the memo.
  • Consolidate payments so the lender can see who paid what and when.
• Layman’s Breakdown:
  “If you know you are in position to qualify for a mortgage faster than they are… make sure you put [in payment app memo] that it’s for, on the memo: January's rent, February's rent...so we can document it.” (Rashad, 04:44)

3. Common Relationship and Roommate Scenarios

• Romantic Partners:
  Many couples split rent without both on the lease—missing out on documentation that can later boost mortgage eligibility. Scenario:
  “They may not ever be on the lease… they're contributing financially... but there’s no real documented record…” (Trevor Shy, 05:27)
• Strategy:
  Before seeking a mortgage, make sure both partners/roommates are formally on the lease and that payments are traceable.
  • If only one qualifies for a mortgage, the other’s rental payments can be used to boost loan eligibility, but only with clear documentation.

4. Strategic Advantages for Unmarried Partners

• Divide & Conquer Tactic:
  If a couple splits after qualifying for a mortgage using this method, only one has a mortgage on their record—enabling both to individually pursue future real estate investments. Quote:
  “Now, she doesn’t have a mortgage in her name. She can still go out here and buy a duplex, a single family and house hack her life away as well.” (Rashad, 08:18)

5. Applications Beyond Romantic Relationships

• College Roommates:
  The same documentation principles apply for roommates graduating from college.
  • A student can use rental income from roommates to help qualify for their first property if documented properly.
• Parent/Child Combinations:
  Optionally, border income can extend to scenarios with family members, not just unrelated roommates.

6. The ‘College as Work History’ Mortgage Hack

• Recent Graduates’ Advantage:
  College graduation counts as work history for mortgage qualification; no two-year job requirement if you have a diploma and a job offer. Quote:
  “You just graduated from college… you did your undergrad… you have an offer letter… you can buy a house immediately.” (Rashad, 10:13)
• How it Works:
  • Present proof of graduation, an offer letter, and a pay stub from your new job.
  • Combine with documented roommate income for stronger mortgage eligibility.

7. Maximizing with Multiple Roommates

• For graduates or young professionals sharing a lease, each roommate’s income can count—as long as documentation and future cohabitation in the new home are established. Quote:
  “The key is everybody has to be on a lease, right? Everyone has to pay you, and then everyone has to be moving into your house.” (Rashad, 13:02)

8. Accessory Dwelling Units (ADUs) as Income Plays

• Using ADU Income to Qualify:
  Homes with ADUs can use projected rental income from the unit to boost mortgage eligibility—even if occupied later by short- or mid-term tenants instead of long-term renters.
• ADU Uses:
  • Airbnb/Short-term rental
  • Corporate mid-term rental (e.g., for traveling nurses, consultants)
  • Content studio or creative rental
• Location Matters:
  Choose properties near hospitals, airports, or large employers—areas where mid-term rentals are in demand. AI Data Center Angle:
  “All these moves that’s happening in AI, those are also real estate plays too if you’re paying attention.” (Rashad, 15:47)

---

Notable Quotes & Memorable Moments

| Timestamp | Speaker | Quote/Insight |
|-----------|-----------|------------------------------------------------------------------|
| 02:49 | Rashad | “She rents out her backyard, her pool here in New York and it pays her mortgage for the year. Like, it’s incredible.” |
| 04:44 | Rashad | “Make sure you put [in the payment app memo] that it’s for… January’s rent, February’s rent, March rent, right? So we can document it.” |
| 08:18 | Rashad | “Now, she doesn’t have a mortgage in her name… she can still go out here and buy a duplex, a single family and house hack her life away as well.” |
| 10:13 | Rashad | “You just graduated from college… you have an offer letter… you can buy a house immediately.” |
| 13:02 | Rashad | “The key is everybody has to be on a lease… everyone has to be moving into your house.” |
| 15:47 | Rashad | “All these moves that’s happening in AI, those are also real estate plays too if you’re paying attention.” |

---

Important Timestamps

• [02:38 – 04:49] Home monetization: pool/backyard rental and border income intro
• [04:49 – 07:51] Documentation steps for roommate income; relationship scenarios
• [09:32 – 11:35] Roommate/parent-child applications; college graduate mortgage hack
• [12:45 – 13:35] Maximizing with multiple roommates and the necessity of documentation
• [13:36 – 15:47] Leveraging ADU rental income and corporate/mid-term rental strategies

---

Summary & Takeaways

• Properly documented rental or roommate income can significantly boost mortgage eligibility for new buyers.
• Take advantage of non-traditional income streams, like pool rentals or accessory dwelling units.
• Newly graduated college students can use their education as work history for mortgage qualification.
• These strategies require everyone involved to be organized, transparent, and diligent about documentation.
• With creativity and good planning, it’s possible to “house hack” your way into stronger wealth-building positions, even in today’s competitive real estate landscape.

---

Earn Your Leisure offers financial wisdom with actionable hacks—making homeownership and wealth-building accessible for this generation.

---

Transcript

[Rashad]

This is an iHeart podcast.

[Dell PC Advertiser]

Guaranteed human Dell PCs with Intel inside are built for the moments you plan and the ones you don't. They're for those all night study sessions. The moment you're working from a cafe and realize every outlet's taken. The times you're deep in your flow and can't be interrupted by an auto update. That's why Dell builds tech that adapts to you. Built with long lasting battery so you're not scrambling for an outlet and built in intelligence that makes updates around your schedule, not in the middle of it. Find technology built for the way you [e-mail] DellPCS built for you

[Trevor Shy]

At Oppenheimer we're proven because we're grounded in discipline. For 145 years we've been building and protecting wealth through every market cycle with precision, clarity and the courage to think boldly beyond the moment. This is what market tested legacy looks like for this generation and the next. Put the power of Oppenheimer thinking to work for you. Wealth Management, Capital Markets Investment Banking

[Earnest]

Earnest what's up? Look, let's face it, most guys just power through pain and strains. But the smart move is taking action early before it turns into something bigger. That's where a physical therapist comes in. They can assess what's really going on and create a plan tailored specifically for you. And and physical therapy isn't just for recovering after an injury. It's about staying ahead of them, building strength, improving movement and supporting longevity so you can live life on your own terms. To learn more and find a local physical therapist, visit choosept.com support for the

[Public Investing Advertiser]

show comes from Public, the investing platform for those who take it seriously. On Public, you can build a multi asset portfolio of stocks, bonds, options, crypto and now generated assets which allow you to turn any idea into an investable index. With AI, it all starts with your prompt. From renewable energy companies with high free cash flow to semiconductor suppliers growing revenue over 20% year over year, you can literally type any prompt and put the AI to work. It screens thousands of stocks, builds a one of a kind index and lets you back test it against the S&P 500. Then you can invest in a few clicks. Generated assets are like ETFs with infinite possibilities, completely customizable and based on your thesis, not someone else's. Go to public.com podcast and earn an uncapped 1% bonus when you transfer your portfolio. That's public.com podcast paid for by Public Investing Brokerage Services by Open to the Public Investing Inc. Member FINRA and SIPC Advisory Services by Public Advisors, llc. SEC Registered Advisor Generated Assets is an interactive analysis tool. Output is for informational purposes only and is not an investment recommendation or advice. Complete Disclosures available at public.comdisclosures if you

[Rashad]

have a swimming pool, I'm not sure if you guys. Trevor Shy have you ever heard of a thing called swim?

[Trevor Shy]

No.

[Rashad]

Is that when you rent the pool, you can rent. You can rent your. You can rent out your backyard?

[Earnest]

Yeah, yeah, yeah, right?

[Rashad]

You can rent out your backyard, you can rent out your pool. Like I have one of my mentees every year, she rents out her backyard, her pool here in New York and it pays her mortgage for the year. Like it's incredible, right? Because people treat that like an event space for the day, right? So you can have somebody's backyard for eight to 10 hours and you're paying two, $300 an hour for the full use of their backyard and their swimming pool. So there's so many different ways to house hack and generate money with a single family or a duplex to make it more affordable. Now. Also, here's another thing that people don't really realize is that border income, AKA if you have a roommate. What people don't know is Fannie Mae will allow you to use this border income to help you qualify for a mortgage under the Fannie Mae HomeReady program. Now, the requirements is the borrower must have a history of receiving that rental income for at least nine of the past 12 months. And you need documentation such as your lease agreement and show proof of receipt that your roommate has been paying you to or since y' all lived in an apartment together. And then you can use that income to help you qualify for a mortgage. So to break that down just in quick layman terms, if you are living with someone right now and you have a lease and they're on the lease with you, if they're your bona fide roommate, not just someone who just in the house and you say, hey, they live here. No, they have to be on your lease. If you know you are in position to qualify for a mortgage faster than they are, what you should do is collect the money, their portion of the rent money from them, tell them to zell it to you, cash app it, whatever it is, and make sure you put that it's on the, on the memo. January's rent, February's rent, March rent, right? So we can document it that they've been paying you and then you go ahead and pay your landlord from your account. If you do that, nine months out of the past 12, then when you go qualify for your mortgage, you. You can use that rental income to. As part of your income to help you qualify for your mortgage. Yeah, I got where I'm going with this.

[Earnest]

I see, I see where you're going with this. Documentation is important. Making sure you're keeping records is important. And that goes for when, if you're buying an individual home, but even more so in this situation when you're trying to have investment property.

[Trevor Shy]

So you, you might want. You. You've unlocked something here. Let's go back a little bit. So, all right, if you're in a relationship with somebody, right? And we talk about 50, 50 a lot, right on. On these different shows and podcasts. But there, that's a real thing though, where somebody lives with somebody and they're contributing, they're contributing something, but most of the time they're just giving a person money. So it's usually either male or female. Somebody has a lease in their name and they meet somebody and after a while, and then that person just kind of ends up living with that person. They may not never be on the lease. Correct. They're contributing financially on a certain level, but there's no real documented record of them contributing financially.

[Rashad]

Correct.

[Trevor Shy]

You're saying that boyfriend, girlfriend, whatever, you're living with somebody, that, that should be something that's documented. Because if it is documented, then what is it called?

[Rashad]

So it's border income.

[Earnest]

Right.

[Rashad]

So if in that same situation you have the girlfriend, let's just say the boyfriend and the girlfriend moves in.

[Earnest]

Right?

[Rashad]

Let's say that situation, the lease is in the boyfriend's name, but y' all splitting it 50, 50. As Rashad said, the girlfriend is not on the lease. Boyfriend is in position a year from now. He wants to go buy a house for them to live in. He should now put her on the lease of the apartment. And then now when she's making that contribution, don't make it on make it cash. She should zell him a wire transfer, a cash app, put on the memo. It's for her portion of the rent as long as we have that document, nine out of 12 months. And then now the boyfriend goes to get pre approved and says that, hey, this is my roommate. She is going to live in the house with me. Now, from a lending perspective, I can use the portion of that rental income that she's paying. Let's just say it's $1,000 a month.

[Earnest]

As I was going to say, clean, clean number, $1,000 a month. Right. She puts on the member. I'm putting $500 in toward that.

[Rashad]

Yeah.

[Earnest]

At the end of the year, let's say it's the 12 months now, it's an additional $6,000 that you have in income.

[Rashad]

Correct. That's now is going to be used for the boyfriend during his pre approval to help them qualify for more of a house. It's, it's a clean way of, of qualifying with using this roommate income. Because your roommates right at the, at the end of the day you're not legally married, you know, you're technically single in the eyes of the, of the law. Boyfriend and girlfriend is not a marital status. Right. Last time I checked. So you're, you're legally single. This is your roommate. So if you do it that way now that rental income can now be used to help qualify for a mortgage. Now I know some people going to say why, why won't she just go on the mortgage with him? This now we talk about divide and conquer. Let's just say now they move into this house, they get approved and they wind up separating. Right now she doesn't have a mortgage in her name. She can still go out here and buy a duplex, a single family and house, hack her life away as well. So just depending on your circumstances and your situation, if you understand real estate financing and these programs that are out there and if you set your documentation up the right way, you can really go out here and scale at a very high level and reap all the benefits of wealth building with real estate. If you know exactly what you're doing.

[Earnest]

That's a very vital play. Man, I never heard that. I'm glad you broke that down before.

[Trevor Shy]

It doesn't have to be boyfriend girlfriend either because there's a lot of scenarios where somebody lives with somebody.

[Rashad]

It could just be your college roommates

[Earnest]

or it could be, could it be parent, child?

[Rashad]

No, it can be parent and child.

[Earnest]

Right.

[Rashad]

But let's think about college roommates. Think about what's just happening May and June we have all these college graduates, right. Most of them have what roommates for the majority. So first of all, if you just graduated college, congratulations, right? But did you know that you can use your, your college education as your work history? You don't need a two year job history, you can use your college history as work history. Did you guys know that?

[Trevor Shy]

Say that again.

[Rashad]

So you just graduated from college, you did your undergrad, right? Four years, you're 22 years old, you're graduating, you just got a job offer from, you know, earn your Leisure Entertainment, you're going to start and you're going to be the marketing manager. You're making a base salary at a hundred thousand dollars and you have an offer letter from Earn your Leisure Entertainment to start August 1st. You don't need to work at Earn your leisure Entertainment for two years. You have your college history for four years. That's your work history. You can now present that offer letter and your first pay stub and you can buy a house immediately.

[Earnest]

So you can use college as work experience.

[Rashad]

Absolutely. Absolutely.

[Earnest]

Has that always been the case?

[Rashad]

Absolutely. Okay. Absolutely. Right? And now if you freak it, you got that college history four years, you got your degree, but during college you had a single family home that you was renting out. And now your roommate is on a lease. If you do what we just said with the boyfriend and girlfriend scenario, now your roommate starts paying you and you know you have a better chance of get in the house faster than them have them pay you. Now first of all, everybody gotta be on the same page with this.

[Earnest]

Right?

[Rashad]

Everybody. It got to be a team effort here. So now they pay you. Instead of paying their portion of the rent, you pay the landlord. And now you can use that border. Not only can use the offer letter from Earn your leisure Entertainment, you can also use that roommate income to help you qualify. Because now that roommate is going to move into your house with you as well and continue to be a roommate.

[Earnest]

And that offer letter is kind of one of those things that you kind of need to have in order for this to work.

[Rashad]

You can't just go out. We need to show that you got a job.

[Earnest]

Right?

[Rashad]

Right. We need to show that you have a job and it's a start date and you can go ahead and get pre approved. But one of the pre approval conditions is going to be hey, when you get into contract, we need to know that you just, you, you're working. Now we need to see pay stubs from Earn your leisure Entertainment as we use in that example to show those pay stubs. So that way now and it matches up with the income from the offer letter. Then boom, you use that. As long as your credit is good, your DTI works, you don't have to wait two years to qualify.

[Earnest]

Yeah, that's a good hack because there's a, there's plenty of college students who, there's three roommates, but there's the one person who gets the lease. Right. If that person now looks at those two and that you're just saying it for one roommate.

[Rashad]

Yeah.

[Earnest]

Eventually that could be two or three, three roommates that are paying them. So that documentation port becomes even more important.

[Rashad]

Exactly. But the key is everybody has to be on a lease, right? Everyone has to pay you, and then everyone has to be moving into your house. Because now it's border income, roommate income, and we're using that to help qualify. So it needs to sustain to the new house, right? The key. So if everybody's on the same page, this could be a home run. But here's how we even go a little bit deeper with this pause. If you buy a home that has a adu, an accessory dwelling unit on it, right? Everybody type ADU in chat. If you have a adu, you can use rental income from an ADU and it can help you qualify. So let's just say, for example, you don't have the roommates, you live by yourself, but you just graduated college and you want to use that college degree hack, right? But you might be short with rent with income to qualify. You find a house that has an adu and we can use that rental income from the ADU to help you qualify as well. And when you get into the adu, now we're going to use long term rental income to help you qualify, but that does not mean you have to have a long term tenant. You can now turn that ADU into an Airbnb play vrbo, you can make it a content studio. There's so many different things you can, you can target midterm renters, like traveling nurses, like flight attendants, like depending on what city you live. So if you live close to airports, you live close to hospitals, right? You should be targeting homes that are closer in proximity to these areas because the midterm rental income from corporations, right? You have people who travel for corporations. They may need someone to stay for six weeks because they're doing a corporate project in a certain city. Think about what's happening. And guys, I'm gonna tell you another hack. And we've, I've talked about this on my program and I know you guys talked about, look at all the AI data centers that's being invested and built all around the country, right? You got Texas, I think there was two or three half a billion dollar projects that was launched this year. Think about it. These people are not the people who are constructing this. They're not going to be long term residents of Texas, right? They're probably coming in from all different parts of walk of life. So what do they need? Rentals. They might only be out there to do a job that's going to take six months. So what do they need? A midterm rental. They don't want to sign a year lease or a two year lease. They may need only a six month leave eight month lease. And it's going to be cheaper than the corporations putting them into a hotel because that daily rate of the hotel that going to add up. You know what I'm saying? So you got to really take the current events and everything that's happening. I know you guys talk about it at scale on Market Mondays. That's why you need to tap in every Monday 8pm Eastern Standard Time to see what is moving and shaking. Because all of these moves that's happening in AI, those are also real estate plays too if you're paying attention.

[Earnest]

Earnest, what's up? Look, let's face it, most guys just power through pain and strains. But the smart move is taking action early before it turns into something bigger. That's where a physical therapist comes in. They can assess what's really going on and create a plan tailored specifically for you. And physical therapy isn't just for recovering after an injury. It's about staying ahead of them, building strength, improving movement and supporting longevity so you can live life on your own terms. To learn more and find a local physical therapist, visit choosept.com this is Martha

[Martha Stewart]

Stewart from the Martha Stewart Podcast. Ever wonder how to make hosting look effortless? Here's a secret. Getting ahead of the mess with new Reynolds Kitchens Countertop Prep Paper Just lightly wet the counter beforehand so the paper grips and stays in place. Then lay down the Reynolds Kitchens countertop prep paper so drips and spills stay on the paper, not all over your kitchen counter. You can roll out dough, prep a party spread, or cook alongside family. When you're done, cleanup is as simple as lifting the paper and revealing that clean counter underneath. Effortless. You can use it for cooking and baking, prep and even crafting, especially when you need extra working space. Because when the mess is already handled, you can focus on what matters. The food, the people, and the moment. It may look effortless, but now you know. It's Reynolds Kitchens Countertop prep paper. Take a tip from me. Wet it, set it, prep it, done. Make it easy. Make it with Reynolds Kitchens Countertop prep paper available now in the Reynolds Wrap aisle in Walmart, Target, Amazon and Costco.

[Rashad]

I'm U.S. transportation Secretary Sean Duffy. We all seem to be in a rush these days, from work to driving our kids around. But when you're behind the wheel, please do not speed. A few minutes saved by going faster is never worth the risk. So follow the speed limit, enjoy the drive, maybe bring some snacks for the kids. And know that along the way, you're getting quality time with your family, paid for by NHTSA. M&M's Popped Caramel do sound different. Oh, no. People are gonna be obsessed. What do you mean? People hate the sound of chewing.

[Public Investing Advertiser]

Maybe they won't like the crunch. Maybe we're saved. Wait a minute. Yellow.

[Rashad]

Have you been eating them this whole time?

[Dell PC Advertiser]

Mmm.

[Public Investing Advertiser]

So tasty.

[Rashad]

Hands off us.

[Public Investing Advertiser]

M&M's popped caramel.

[Dell PC Advertiser]

It's more fun together.

[Rashad]

This is an iHeart podcast. Guaranteed Human.