Newsflash: Rent 1st home to relative, qualify for purchase of new home?

Mortgage question: We have $400k of equity in a house valued at $600k which we bought in 2011 for $300k. I just got a job offer in another state with a much cheaper real estate market. We can get a house exactly like ours for $200k. We have $50k to put down. Our current mortgage is $1500 with no consumer debt, student loans, no debt other than our mortgage. New job pays $70k.We don’t want to sell and my spouse doesn’t want to rent to strangers because currently my spouse’s mother lives in a 1br mother in law apartment in our house and pays us “rent” under the table of $1k. Fair market rent for our whole house would be $2600. For just her apartment it would probably be $1k. My Mother in law needs to keep living in our house because her credit is as terrible as humanly possible and she has 4 dogs and a cat and she’s just kind of a mess financially and personally but can’t move with us to the new city because of her job.Can we sign a real lease with my mother in law and use that income to qualify for more mortgage in our new city? Alternatively, could she cosign on a mortgage in our new city (despite her terrible credit) so her $50k salary would boost what we qualify for because on paper her $1k/month hasn’t been documented to this point? Thanks!



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