I'm not going to comment on the mortgage fraud issue, because I'm sure many others will comment on it, and you are ignoring everyone's opinions anyhow.

I still question whether it's a good deal. The $3880 probably doesn't include taxes and insurance. Where I live the taxes are about 2% which would be another $1,000/month. Insurance could be $500/month, which would put you in a negative cash flow of $1500/month, not counting any operating expenses or repairs.

You should get both of these amounts before proceeding. In may places the property is reassessed when it is sold, so if the current taxes are low don't use that figure, use what they will be after the reassesement.

Since your exit strategy is to sell it to an investor that might be hard to do with a negative $1500/month cash flow.

the amount on the income is 6k a month......Now in reality I dont make 6k a month however...With the income generating from the tennants thats 4k, and I make $2100 a month after taxes so in reality its like I make an income of $6100..That doesnt even matter, they said at the closing which is tomorrow there is no tax forms that need to be filled out stating that I make that 6k..All they need to know is that I have a job and a income

bstout $3880 includes taxes...homeowners insurance is all paid for it was $1100

So you plan to lie about your income? That is fraud. We need a lender to weigh in here. But it is my understanding that they figure the rental amount separately they don't expect you to have included it in your income. You don't have an income of $6,000 you have an income of $2100. That is the income you need to be stating. If they the lender want to factor the rental income in to your ability to get this loan they will do so. You are fraudulently misrepresenting your income. I can stand here and say FRAUD FRAUD FRAUD till I am blue in the face and you just are going to spin this to make you feel comfortable going forward.

yea but heres the thing at the closing if they dont require any tax stubs or anything to proove my income it doesnt matter, and the bank doesnt care...If this was a loan where I needed proof of my income I guarentee you my intrest would be alot less then what its at..

Was the income you "stated" actually what you make or did you make up a number to support the payment?

Its not what I stated its what the loan officer stated...and its what the banks told me when I called...They said that there is no other information I need to support that income that the loan officer stated...He said this loan is all based off your credit

Has this loan officer been recommended by your friend?

Lenders Verify the Source of Stated Income
While lenders don’t check income on a stated income loan, they do check the source of the income. Ordinarily, they require that a self-employed borrower be self-employed in the same business for two years, and that a salaried employee be employed in the same line of work for two years.

The income stated by the applicant is not verified, but it must be roughly consistent with incomes earned in the type of business or line of work in which the applicant is involved. Where the range of incomes is very large and the applicant comes in at the top of the range, the underwriter might ask the applicant to strengthen the application by showing significant financial assets.

You are palying a word game with this. What income did the loan officer put down on the app to submit to the underwriter. Somewhere during this process you are goint to have to sign the 1003 stating that the information on the form is correct. Your "stated" income will be listed on this form and if you sign it you are committing loan fraud if the stated income is not what you make either by salary, commissions or investment income.

Stated income loans based on credit means only that the lender is not requiring you to produce the documentation to get the loan and you are paying a higher interest rate from this priviledge. You will also sign a 4506 ot 4506-T form allowing the lender to request several years of your tax returns to verify the stated income.

What you appear to not want to see is that you actually have to make the amount on the atated income form.

Stated Income Loan: Great Rates on Stated Income Home Mortgage Loans
Stated Income mortgage loans are for those who actually make more money than they can prove with traditional mortgage documentation. They do not require pay stubs, W-2's or tax returns and they do not require verification of your income. Most of our programs also do not require that you sign a 4506, 4506T or 8821.
Typically a borrower in one of the following situations is a good candidate for a stated income loan:

Someone who is self-employed and has a lot of tax deductions and as a result cannot "show" enough income to qualify for a traditional mortgage.
Someone paid strictly on commission.
Someone with a base salary who also earns commission or bonus income.
Someone with a second job or other household income in a field where they have the ability to make good additional income.
Someone with a lot of tax deductions whose taxable income is reduced below what they would need to qualify for a traditional mortgage loan.

What is a 4506, 4506T or 8821?

A 4506, 4506T and 8821 are all IRS forms that mortgage lenders use to pull a copy of your tax returns. They are used for fraud prevention on full doc and reduced documentation loans (stated income, no ratio, no income, no asset, etc.). Most brokers and lenders will have you sign one at either application or closing. It is rare that they are used unless an underwriter suspects fraud, and it is more rare that they might be used in a random audit after closing, but it can happen.

Essentially they serve as a means to keep people honest when they are applying for a stated income mortgage. Most of our stated income loans do not require the use of these forms and none of our no doc loans require them.

I think that if you make $2100 and you claim $6000 that is going to raise a few eyebrows. How many people who do your job make $6000? Again you are committing mortgage fraud by misstating your income.

So who is this lender that you are doing these cut and paste jobs from their website or an e-mail?

Paul I have been wondering the same thing.