Currently renting, how riskey is it to purchase two owner occupied condos at the same time if its with two different lenders? May live in one and rent the other. I know it takes a while for a mortgage to hit a credit report, are there any dangers to trying this?
Its mortgage fraud.
How about buying 1 property owner occupied and then 1 year later you find another place you would rather live in. So you rent out your old place and live in the new one? Is their anything wrong with that?
Chaser has sound advice. Or just buy one owner occupied and the other as an investment or second home. Don’t lie on a mortgage application, as stated that is mortgage fraud which is a federal offense.
There is nothing in the mortgage contract that says you can not move out and rent the property at a later date, but you are signing a document when you do the loan stating that it is your primary residence. There are programs that you can get that will get you just as good a deal as the primary residence. I do not know what state you are in, as each state has different programs. Do not risk doing anything unethical, when you can get the job done right.
There are “occupancy affidavits” that are required to be signed from time to time, also if the lender suspects you might not be living in the property they can do a post-close occupancy inspection afterwards.
so if you move out of an OO property technically you have to refinance to NOO? I dont mean to be a pain but this seems like a tricky area and I am just trying to get the facts.
I’ve never heard of a lender requiring you to refinance it as a N/O/O if they “find out” you no longer live there, they usually just call the note “due” (meaning you have to refinance with a new lender, or sell, etc.). Some lenders only require you to live in the property for X amount of time, some you just need to have the intent to occupy it as your owner occupied home. Bottom line it depends on the loan documents, each lender proceeds differently.
I will be doing one as an owner occupied and one as a non-owner. Don’t want to break the law by any means. Thanks for everyones input.
A lender once told me that she heard of a homeowner put in jail for loan fraud when the bank found that he’d never intended to live in the property. They were able to prove it because he bought two “owner-occupied” properties at once. Never changed his address or did anything to prove he intended to move. I think his brother-in-law blew the whistle and helped provide evidence.
Jail isn’t worth it, so good choice to be honest. Also need to watch those angry brothers-in-law…
Interesting website that shows what can happen when you try and trick the banks into financing
mulltiple owner occupied homes fraudulently. Check it out. www.iamfacingforeclosure.com.
Don’t take unnecessary risks, there is a better, legal way to accomplish aquiring multiple r.e.