Mortgage lender wants letter confirming future royalty income

I’m wanting to build a home and the lender is asking for a letter from the oil company stating that my royalty income will continue for next 3 years. I know they won’t do this, has anyone been in this situation and found a work around? Thanks

Not going to happen, no way no how. No Company would ever put themselves in that position.

I’m surprised a mortgage lender would even consider that income stream. There are banks that will do reserve-based lending, but typically only on very large loans, and they are very conservative. They will typically require a third-party engineering report and even then might only loan on 60% of the value.

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That situation is fairly rare, but certain oil and gas savvy lenders will accept a revenue prediction from a third party certified petroleum engineer appraiser using a standard NYMEX five year price deck. No guarantees, just a professional third party estimate.