Mortgage rent free letter 2023 (guide + free samples)

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This post covers everything you need to know about mortgage rent free letter.

Our first scene is you are living with your spouse, parents, relatives, or friends and you do not pay any rent.

The second scene is you want to buy your first property or you need to refinance an investment property that you own while living rent-free.

That is where things (scenes) get interesting.

You don’t have a rent history to show to your lender that you are capable to afford housing costs.

Any solution?

You will need a living rent-free letter (For the purpose of this post, we will call it mortgage rent free letter) from a house owner stating that you don’t pay any rent.

With the appropriate lender, you can dramatically boost your borrowing power by presenting evidence that you do not pay rent.

Here I will explain;

  • What is mortgage rent free letter?
  • Why do you need it
  • How to write an effective mortgage rent free letter
  • mortgage rent free letter samples
    • Mortgage rent free letter from a parent
    • Mortgage rent free letter from a spouse
    • Mortgage rent free letter from a landlord
  • etc.

Let’s get started

What is mortgage rent free letter?

A mortgage rent free letter is a brief statement of facts written by a homeowner or renter usually a parent, spouse relative, or friend to a potential lender to verify that he is currently living rent-free with a potential borrower.

A mortgage rent free letter contains brief clarifications you can use to cover any gaps in your supporting documentation for your underwriter.

Therefore with a well-written rent-free letter, a lender can be sure that you are living rent-free life thus there is no need to show a rent payment history to support your mortgage application.

As I said before;

A rent-free letter is very useful when you’re planning to buy your first home or refinance an investment property you own while living rent-free

With the appropriate lender, you can dramatically boost your borrowing power by presenting evidence that you do not pay rent.

How to write an effective mortgage rent free letter

A mortgage rent free letter is written in a business letter format. Begin your letter with your address and contact information, followed by a date and the potential lender’s address, and state that you are writing to confirm that you have been living with the potential borrower rent-free and state for how long.

Finish your letter with SINCERELY followed by your signature and name

REMEMBER the aim of your mortgage rent free letter is to prove that the potential borrower is living rent-free.

Therefore to write an effective mortgage rent free letter do the following

  • Provide your name, address, and contact information
  • Include the date of the letter
  • Include the potential lender‘s name and address
  • Provide the name of the borrower
  • Indicate your relationship with a borrower- a spouse, child, friend, or relative
  • Instantly tell the lender that a borrower is living rent-free (in your opening paragraph)
  • Provide the address of the house you live with the potential borrower
  • State for how long have you lived with the borrower
  • Be straightforward
  • Maintain a professional tone
  • Be honest
  • Attach necessary documentation eg. Lease agreement that shows a borrower is not obliged to pay the rent

Mortgage rent free letter template

Your Name
Address
City, State, Zip Code
phone
email

DATE

[Potential lender’s Name]
[Potential lender’s Street Address]
[Potential lender’s City, State, and Zip Code]

Dear [Mr/Ms. Recipient’s last name]

It is with great enthusiasm that I’m writing this letter to certify that [Name of the borrower], my [your relationship with borrower] is living rent-free with me in my apartment at [location] for the past [duration].

I understand that [Name of the borrower] is planning to buy his/her first home and he/she is now in the mortgage application process I strongly believe that this letter adds significant value to you in making a reasoned decision.

If you have any questions regarding this letter feel free to reach me at [email] or [phone].

Sincerely

Signature

Name

Mortgage rent free letter pdf

Mortgage rent free letter from a parent

The following is a sample Mortgage rent free letter from a parent.

This sample is suitable for people living rent-free with their parents who need a living rent-free letter stating that they don’t pay any rent.

Let’s see it!

Mortgage rent free letter from a parent

Parent’s Name
Address
City, State, Zip Code
phone
email

DATE

[Recipeint Name]
[Potential lender’s Organization ]
[Potential lender’s Street Address]
[Potential lender’s City, State, and Zip Code]

Dear [Mr/Ms. Recipient’s last name]

I, Job Jackson of 8062 E. Primrose St. Mahopac, NY 10541 do hereby certify that My son Isack Job, 25yrs is living with me rent-free at my house located at 385 W. Princess Ave. Newburgh, NY 12550 for the past 4 years.

I understand that Isack is about to purchase his first home and is now in the mortgage application process. I am confident that this letter will assist you in making an informed decision.

If you have any questions about this letter, please contact me at jackson@email.com or (270) 788-3080.

Sincerely

Signature

Job Jackson

Mortgage rent free letter from spouse

The following is a sample Mortgage rent free letter from a spouse-wife/husband.

This sample is suitable for people living with their spouse but their not responsible to pay rent and they need a living rent-free letter to that effect.

Here we go!

Mortgage rent free letter from spouse

Dear [Mr/Ms. Recipient’s last name]

I am writing this letter to confirm that Hellen Kim, my wife, has been living rent-free with me in my apartment at [place] for the past [period].

I’ve attached my lease agreement, which demonstrates that I am entirely responsible for paying the apartment’s rent. Hellen Kim, my wife, does not pay the rent.

I understand that Hellen Kim is looking to purchase her first separate real estate and is now in the mortgage application process. I am confident that this letter will assist you in making an informed decision.

If you have any queries about this letter, please contact me at [email] or [phone].

Sincerely

Signature

Name

Mortgage rent free letter from landlord

The following is a sample Mortgage rent free letter from a landlord

This sample is suitable for people living in a rented house but their not responsible to pay rent and they need a living rent-free letter to that effect.

Check it out!

Mortgage rent free letter from landlord

Dear [Mr/Ms. Recipient’s last name]

I am writing to certify that Greg Howard, my Tenant, has been living rent-free in my apartment at [location] for the past [time].

Our lease agreement provided for NATURAL LOVE AND AFFECTION rather than rent. Greg is more of a caretaker than a renter in my apartment. (I have enclosed the leasing agreement for your convenience.)

I am aware that Greg Howard is in the process of applying for a mortgage in order to buy his first home. I’m sure that this letter will help you come to a smart decision.

Please contact me at [email] or [phone] if you have any questions concerning this letter.

Sincerely

Signature

Name

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Isack Kimaro
Isack Kimaro

Holder of Bachelor of Laws (LL.B) and Post Graduate Diploma in Legal Practice. I am dedicated to providing valuable and easy-to-understand legal information for individuals at all levels of understanding. Whether you are a layperson looking to increase your knowledge, a law student striving to excel in your studies, or a practicing lawyer wanting to expand your expertise, I am here to help. I'm not creating content, I'm creating awareness to empower you to take control of your legal understanding and achieve your goals.