Just a simple question for reference..

[Champion80]

Hey there everyone, I have a question..

If I was a roomate for 3 years lets say, and I am now deciding to buy a house, does the fact of not being on the lease effect the lending companies decision, and how do they deal with that?

Thanks in advance. :D

[Anonymous]

Oooooooo .... ick.

charles can give a professional answer to this - but my guess would be a> you can't b> need a statement from the leaseholder that you paid your share of the rent.

I don't know about Cal-ee-four-ny-ay but here most landlords if you had a roommate without letting the landlord know about it that's a sure fire eviction. *reads my lease* Yup. right here in black and white.

[AaronE]

Well a lender will get a VOM if they need mortgage/rental history... unfortunately if you were not on the lease the landlord will be like "who?"

If the landlord knew you were there and it's a small time operation you might be ok. Or possibly if you can show 12 months canceled checks to the rental company in your name

[Anonymous]

My guess with this OP though, he/she handed his/her roommate (the leaseholder) cash or wrote him/her a cheque and leaseholder wrote the check to the landlord. The way it typically works with roommates, esp. one who is not a party to the lease

Hence my b> answer.

[AaronE]

I understand and hence my emphasis on the word your.

Point being the OP might want more options.

In addition the OP could be considdered "Rent Free" and might qualify for a full doc loan if he's got good credit and a fairly strong profile.

[amortgageman]

Yes there are a few lenders who do not require a rental history to qualify. It is always best tp have a rental history, so in the future write a check to your roomate for rent. It opens up many more doors.

As a general rule, twelve months verifiable rental history is required.

[firstsource]

There are lenders that allow a private VOR to be used. They are in the sub-prime catagory, so your rate may be a little higher. Explain the situation to your Loan Officer and have him do the research.
Charles