Why this document matters
When a borrower’s application indicates no current housing expense or that they are living rent-free, this form is utilized to corroborate that information with the third-party homeowner, such as a landlord, parent, relative, or friend. Without third-party corroboration, lenders cannot verify rent-free status or accurately calculate DTI, as zero housing costs significantly impact qualification. Third-party validation provides independent confirmation from the property owner that the borrower’s stated housing situation is accurate.When this document is requested
This document is requested when:- Borrower reports no rent or mortgage payment
- Application shows zero housing expenses
- Underwriting requires third-party verification of living arrangement
- Need to validate rent-free status with property owner/landlord