> ## Documentation Index
> Fetch the complete documentation index at: https://docs.pylon.mortgage/llms.txt
> Use this file to discover all available pages before exploring further.

# Third-Party Validation - Rent-Free Living Arrangement

> Technical specification for the Third-Party Validation of Rent-Free Living Arrangement document

## 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](/entity-models/key-concepts/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

## Required data fields

### Loan information fields

| Field Name               | Type   | Required    | Data Source     | Notes                                          |
| ------------------------ | ------ | ----------- | --------------- | ---------------------------------------------- |
| Loan number              | String | Yes         | Loan entity     | Alphanumeric identifier                        |
| Borrower name            | String | Yes         | Borrower entity | Full legal name                                |
| Co-borrower name         | String | Conditional | Borrower entity | Required if co-borrower exists                 |
| Subject property address | String | Yes         | Loan entity     | Full street address of property being financed |

### Current living arrangement fields

| Field Name                | Type    | Required    | Data Source | Notes                                                         |
| ------------------------- | ------- | ----------- | ----------- | ------------------------------------------------------------- |
| Current residence address | String  | Yes         | User input  | Full street address where borrower currently resides          |
| Is currently residing     | Boolean | Yes         | User input  | Yes/No checkbox                                               |
| Residence start date      | Date    | Conditional | User input  | Required if "Is currently residing" = Yes, format: MM/DD/YYYY |
| Pays rent or contributes  | Boolean | Yes         | User input  | Yes/No checkbox                                               |

### Third-party verification fields

| Field Name            | Type      | Required | Data Source | Notes                                                                            |
| --------------------- | --------- | -------- | ----------- | -------------------------------------------------------------------------------- |
| Verifier name         | String    | Yes      | User input  | Full name of person verifying                                                    |
| Verifier relationship | Enum      | Yes      | User input  | **Enum values:** `PARENT`, `LANDLORD`, `RELATIVE`, `FRIEND`, `ROOMMATE`, `OTHER` |
| Verifier signature    | Signature | Yes      | E-signature | Digital signature with timestamp                                                 |
| Verification date     | Date      | Yes      | E-signature | Auto-populated on signature                                                      |

## Suggested questions for data collection

| Question                                                                    | Response Type  | Validation                                                                                         |
| --------------------------------------------------------------------------- | -------------- | -------------------------------------------------------------------------------------------------- |
| "What is the borrower's full name?"                                         | Text input     | Auto-populated from borrower entity                                                                |
| "What is the co-borrower's full name? (if applicable)"                      | Text input     | Auto-populated if co-borrower exists                                                               |
| "What is the subject property address?"                                     | Text input     | Auto-populated from loan entity                                                                    |
| "Question 1: What is the address where the borrower currently resides?"     | Text input     | Required, full street address format                                                               |
| "Question 2: Is the borrower currently residing at the above address?"      | Yes/No         | Required                                                                                           |
| "Question 3: If yes, when did the borrower start living at this address?"   | Date           | Required if "Is currently residing" = Yes, format: MM/DD/YYYY                                      |
| "Question 4: Does the borrower pay rent or contribute to housing expenses?" | Yes/No         | Required                                                                                           |
| "What is your full name? (Person verifying)"                                | Text input     | Required, min 2 words                                                                              |
| "What is your relationship to the borrower?"                                | Enum selection | Required, select from enum values: `PARENT`, `LANDLORD`, `RELATIVE`, `FRIEND`, `ROOMMATE`, `OTHER` |
| "Please sign and date this document"                                        | E-signature    | Required, includes timestamp                                                                       |

## Template

Pre-made templates for this document will be provided separately. When a task is created requesting this document, you can provide the third party with the template to complete and upload.