What is proper documentation when a borrower is purchasing a rental property under the Stated/Stated program when the property is being delivered vacant? Is the appraisal sufficient?
Qualify the borrower utilizing 75% of the gross estimated market rent(s) as confirmed in the appraisal report. Also, obtain at least two rental reference letters, on letterhead, from local realtors who are experienced in the renting of apartments located within the subject’s market area. Ensure that they state their opinion of the estimated monthly market rent and the marketing time. Reserves should be sufficient to cover the required PITI for the number of months needed to cover the marketing time estimated by the realtors (in addition to any other reserve requirement).
Related Questions
- What is proper documentation when a borrower is purchasing a rental property under the Stated/Stated program when the property is being delivered vacant? Is the appraisal sufficient?
- My rental income was not reported on last year’s tax returns because the property was vacant. What documentation do I need to validate rental income?
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