Stated Income Condotel Mortgage broker: 3CALOAN
In the stated income loan program, the stated income condotel mortgage broker does not check the borrower’s income by looking at their income tax returns, W-2 forms, pay stub, or other records. The borrower states his or her income to stated income condotel mortgage broker. Consequently, the stated income condotel mortgage broker trusts this information. Borrowers found it easier to qualify for the loan by stating their income to stated income condotel mortgage broker because there is no tax return required, and it is also known as no-doc loans.
What are Condotels?
A Condotel is a term used for condo-hotel. Condotel units are different from normal condos. Condominium complexes are of two types, warrantable condos or non-warrantable condos. Condo complex which can be sold to Fannie Mae and Freddie Mac, as well as VA, FHA, and USDA are known as a warrantable condominium unit. There are some rules which are imposed by Fannie Mae and Freddie Mac to take a home loan, due to all of these rules some properties fall into the non-warrantable condos. Nonwarrantable condotels are initially built by real estate developers in resort and hotel companies. Owning Condotel property enables one to earn a good passive income while also giving them access to basic hotel amenities. However, when the owner is not utilizing the unit, he or she has the option to partner with a rental agency. By renting the condotel unit, one receives 50% of the rental income earned by their Condotel unit after deducting a 10% service fee. Yet, it must be noted that every condo property has its own set of different rental programs. Usually, the property management distributes rental income on a quarterly basis to each unit owner. If one is investing in a condotel property, he or she must be educated about everything in the unit. By renting the condotel unit one can easily pay the monthly mortgage payment with the help of rental income. Condotel units are usually furnished with all the basic requirements. When the borrower rents the condotel property, they do not have to take care of the small things like maintaining the property, marketing the property, or finding renters in the offseason.
Guidelines as per Stated Income Condotel Mortgage Broker
Property Type in Stated income condotel mortgage program: Condotel
Occupancy: Investment properties
Credit
- A minimum middle credit score of 600.
- In the last five years, there should be no one has taken any legal action taken against you
- No late mortgage payment, lien, collection account and judgment in the past 2 years.
Requirements of Income, Assets, and Reserve:
- Debt-to-income ratios cannot exceed 40%.
- As a condition of funding the loan, the borrower must deposit liquid reserves to the lenders FDIC-insured bank account for a period of 6 months. The lender allows the borrower to withdraw this amount after six months.
- Income is not verified by stated income condotel mortgage broker under this loan type. It is only stated on the stated income loan program, which is also known as no-doc loans.
- Gift funds are permitted for the remainder of the down payment and the reserve requirements. Consequently, gift funds must be given by any family member, such as mother, father, sister, brother. It must be accompanied by a gift letter and bank account statements sourcing the funds.
- Reserve requirements must be documented by all your pages of last 3 months bank statements.
Employment Verification in Stated loan program:
- Stated income condotel mortgage broker will require CPA letter, business license, or tax preparer letter for self-employed borrowers with no reference to income.
- For salaried borrowers, stated income condotel mortgage broker will require verbal verification of employment within 10 days of funding with no reference to income.
Final thoughts
If you have a higher credit score and more money on the side for a down payment then you can apply for a stated income condotel mortgage program or no doc loans with a stated income condotel mortgage broker. For refinancing, you can use stated income refinance. If you still have any question about this program, you can contact us at 818-322-5626 or (818) 3CA-Loan today.
