House Hacking: Live in One, Rent the Rest

Choose an owner-occupied financing path

A borrower who will live in the property should review an eligible conventional, FHA, VA or borrower-income program. Standard DSCR is investment only. The legal unit count and program determine which properties can be considered.

An ADU or room rental is not automatically an additional legal unit. Confirm the appraisal classification and the program’s rental-income treatment.

Separate qualifying rent from your cash-flow budget

The lender decides what rental income can count and what documents support it. Your own budget should consider vacancies, utilities, repairs and any shared household costs.

Run a period with no tenant income. A mortgage payment continues even while a unit is being repaired or a new tenant is being found.

Plan the practical side of being a landlord

Review leases, tenant access, parking, utilities, insurance and association rules. Understand who pays for shared services and how you will handle maintenance.

Before changing future occupancy or transferring title, review your loan obligations and seek appropriate advice. An initial owner-occupancy commitment should not be made for a property you intend to hold solely as a rental.

Prepare a household and property review

Bring both the property details and the personal income documents required by the selected program.

• Intended residence, legal unit count and property condition.
• Lease or appraiser-supported rent for other eligible units.
• Employment, income, debts and funds for closing.
• A budget for household expenses, vacancy and maintenance.