Posted by GregNY on February 25, 2002 at 16:06:24:
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Owner Occupant status - Posted by Tim (CT)
Posted by Tim (CT) on February 25, 2002 at 15:17:32:
Is there anyway to get around the owner occupant status when getting financing? I’m sure everyone has run across this before, I just don’t know if there’s anyway around it. One of my thoughts was to get a partner that doesn’t have a mortgage (someone that is a a current renter with great credit) to go in with me. Have this person be the one to apply for the mortgage and say they are going to live there. There will be no open mortgage notes to track back to so I think it would fly. Now, obviously, this person would never live there, but would the bank ever check? And, even if they did, couldn’t they say that they lived there for a while but decided to rent it out instead. I suppose this is somewhat fraudulent but to what degree? Would the lender ever find out?
Any thoughts would be appreciated.
Thanks.
Re: Owner Occupant status - Posted by di(WI)
Posted by di(WI) on February 26, 2002 at 21:07:57:
Tim, If you’re going to get a partner anyway, why not get one that WOULD live in the apartment/house. If they live there 6 months to a year, you’re covered and they can move on, even to another property you purchase together. It would be legal, ethical, and profitable.
Yes there IS a way… - Posted by Mark (SDCA)
Posted by Mark (SDCA) on February 26, 2002 at 11:41:23:
It’s called TELL THE LENDER… You wont be living there so get a NOO loan… I do it all the time.
Mark
Upon further review…maybe not (NT)! - Posted by Tim (CT)
Posted by Tim (CT) on February 26, 2002 at 07:00:16:
nt
Re: Owner Occupant status - Posted by David H
Posted by David H on February 25, 2002 at 21:43:49:
On a cash-out re-fi of my personal residence, Countrywide sent someone 'round to the door to inquire if the homeowners were indeed living in the house.
Re: Owner Occupant status - Posted by janice
Posted by janice on February 25, 2002 at 21:25:19:
For what it’s worth, we bought a condo that we intended to occupy, we got a owner occupied loan.
When we wnt to evict the tenent, she put up a huge stink. Several months later we threw in the towel and found another place, not a big deal since she’s been an ideal tenant, pays her rent on time, and we have a nice cashflow.
Didn’t intend for things to work out that way, but they did.
The lender has never said “boo”.
Re: Plan to do more business? - Posted by Rolfe Kurtyka (Mpls/StP)
Posted by Rolfe Kurtyka (Mpls/StP) on February 25, 2002 at 18:48:29:
If you plan to stay in business, it’s better to always be honest.
What will you do on your next property, especially if you use the same lender?
Rolfe
Re: Owner Occupant status - Posted by terry
Posted by terry on February 25, 2002 at 16:27:06:
one thing to look out for, the insurer. they definitely check.
i bought a rental property and it was unoccupied for the first month while i renovated it. about a month later, out of nowhere, i got a notice from the insurance co. cancelling my policy because “your property is vacant and undergoing renovations.” ouch.
by the time i got the notice, i’d already rented the place out so i was able to tell the insurer it WAS occupied and they reinstated my policy. that’s just something to be aware of. i had no idea they checked.
Re: Owner Occupant status - Posted by David Krulac
Posted by David Krulac on February 25, 2002 at 16:16:48:
if the loan is a Federally guarenteed loan like FHA/HUD/VA, or through a Federally charted bank or savings and loan, or is bought on the secondary market by a Federal charted organization, then the penalty for loan fraud is 5 years in jail and $250,000 fine.
You decide if its worth it!
David Krulac