I do airbnb legitly in a home that is in my dad's name. My dad owns multiple properties and one of them is mine but not in name.
Income is 140K and year WITHOUT AIRBNB and credit scores fine. This airbnb money is all pin money--change. But, it adds up and I do fun things with it--like remodel the bathroom floor. We aren't talking about gutting my kitchen.
Preapproval process was REALLY concerned with that. It was sort of maddening since we have decent regular income. They want an explanation of airbnb and asked me to stop doing that.
Anyway, I don't plan on stopping because it's not part of my real income. I want to open a different checking account to put all my airbnb money in. I'm doing nothing illegal, that money is not part of what's needed to pay the mortgage and it's not part of the down payment.
Question is, CAN I OPEN A NEW ACCOUNT? They say they pull a soft credit. Will the mortgage underwriters or my LO see this and be nosy? Will I have to explain. The new account requires my social. I don't want to f this up in the middle of it but it's about to be football season which means I'll make a pretty penny and I don't want to stop.
I'm FHA and I think they are nervous. He said, "We just want to be sure you aren't doing that anymore."
Why, though? I have two residences--a rental in the city I'm buying and my dad's condo (I pay the taxes and it's mine, I just haven't filed the transfer of title because I'm lazy). Of course we use the empty house to make money on it. I make a lot during football season and I don't want to give that up.
I suspect it's becasue they think I might be buying another house to do airbnb only. So not true. I'm buying it in the city I work. The airbnb goes on in my extra house.
Withholding any information, such as checking accounts, income, assets etc. from the loan officers is never a good idea, especially if you don't want to have problems prior to closing.
Probably not illegal, but certainly ill-advised. Not sure why the LO is giving you trouble over it though.
Not legal? I am not sure about that! I believe you have the right to not disclose a bank account if you do not want it to be considered as part of your qualification. I believe the only time it is a problem is when you do not tell them about a debt. They'll likely find out about that debt on their own.
I agree with this.
I have a checking/savings with NFCU and a separate savings account with Capital One. I am not disclosing my Capital One because I'm not using it as a qualification source for the mortgage. This was also what my lender told me. I am disclosing my NFCU account because that's where my direct deposit goes and that's also the account I use to pay bills.
So long as the lender has a viable account, that has enough funds to close and/or reserve funds (If necessary) then they wouldn't care about any other accounts (unless funds are being deposited from said "Other Accounts", then they will want those account statements as well)
Just use different bank, so you don't end up with a combined statement that ends up showing the account.
There is nothing wrong with this....
If you have enough assets in one account to qualify, you don't need to show them ALL of your accounts....As a lender we pull out account statements all of time if we don't need the funds in those accounts.