Hello,
I'm trying to do a cash out loan on my rental property. I met this loan rep and he told me he has a stated income loan program available to investors. In didn't believe him but he assured me that these type of loans are coming back. He said I can cash out 80% of my property's value. He assured me by saying he closed many of these type of loans already. So I believed him and went through with the loan application.
I filled out the 1003, submitted all my bank statements and every possible personal docs required. The bank he uses was big bank. We did the appraisal and the value came out a little lower than we thought. So they revised the 1003 loan amount and dropped it by about 70% which is still fine. Well, just a few days ago, he called me told me that the loan amount will now be based on the rental income collected and not the stated income he initially told me about. This changed the entire term of the loan. Because of that, the loan amount will now be reduced to 50% of the property value. I told him if that's the case, then I won't do the loan. He said he would talk to the lender and it's been several days and haven't heard from him yet.
To be frank, I am furious. I fear this loan is dead. He wasted about two months of my time. I was really depending on the fund. I feel like I can't trust him anymore. I am under the impression that he lied to me from the beginning. He had to have known that the loan was based on some form of documented income such as the rent rather than stated income. I can't help but to feel like I've been scammed or lied to.
Did the loan rep break any laws by lying to me? Is there anything I can do about this?
Thanks!
Keith
