They called the wrong police - Posted by Rob FL
Posted by Rob FL on February 04, 2000 at 08:07:46:
These are two different potential violations. Almost any government-backed loan (i.e. FHA,VA,FNMA/FHLMC,etc.) that requires less than a 20% down payment will have a clause in it requiring owner-occupancy for a given amount of time (usually 1 or 2 years). I have never heard of a mortgage that required owner occupancy for longer than that.
For instance, my first property I ever bought was a duplex. I used an FHA loan with 3% down. The mortgage had a clause stating that it must be owner occupied for at least 12 months after the loan origination date. Well after 7 years I finally moved out last summer and now the place is strictly a rental property. In addition, this mortgage has a DOS clause in it (actually it is assumable with qualifying). But these are 2 completely different mortgage clauses.
When all else fails read the documents. You might be surprised what they actually say.