Posted by blakey on January 18, 2004 at 14:28:46:
Here’s the scoop from an underwriter. I see this all the time, it’s standard practice for many brokers.
Borrower sign an affidavit of intent to occupy. Lender follows up after 30 days with an occupancy inspection. You’re not living there. Lender will contact broker and ask for the difference between the rate as NOO and OO at the time of closing (say it’s a 2 point spread), that’s if the loans ltv etc fits as a NOO. If not you have to refinance the loan and payoff the lender.
It’s a hellava price to pay, suck it up and pay the extra, or take the risk of feeling pain later.