So i have tried almost all local banks in my area for a loan on an investment property and they all answer with " we are only loaning on owner occupied properties.
My question is this.
-If i go to the bank and tell them that i own the property with no mortgage on it,i move to the property and apply for a mortgage as owner occupied , will the bank mortgage the property even tho I’m the owner or will they just get me a equity loan??
How long should i stay in the property?.
How will they know is my primary residence if the address is not in my credit report?
WOW…Same reason I’ve logged on today!! Same dilemma, PLUS mine is a duplex with half rented—they REALLY won’t deal with me!!!
Could really use the same advice!! Or any suggestions on who WILL deal with me!!
You will have to provide evidence that you are occupying the property. Your drivers license will have to reflect the address as will your bank statements and you may have to provide utility bills as well. UW’s have caught on to the false occupancy and are going the extra mile to make you prove you live in the house.
DJ,
How long have you owned the property? If you have had it for 12 months then you should not have an issue with doing a NOO cash-out refinance.
Hopefully two birds won’t be killed with the same advice :biggrin
I thought about the utility bills and dl thing but was hoping they wouldn’t bother.
Here is my scenario in hopes someone might direct me to the pathway leading to the bright light at the end of the tunnel.
A - Single Unit currently used as Main residence acquired in mid 05 owner financed for 35K with no interest at 10 yrs where balance is about 20K…almost completely updated, in the process of converting to a duplex.After the duplex conversion by just renting one unit should be enough for positive cash flow
B - Duplex acquired in 07 on a land contract and existing mortgage in place for 45K , balance is about 27K to mortgage loan and about 5K to seller for a total due balance of about 32K and land contact due this month.Positive cash flow of about Net $200 a month.
C - Duplex acquired mid 08, seller carried a portion financed at 2 years with a balance of only about 3.5K to the seller…Needed extensive work, One unit should be completely renovated by next week and the other unit in 2-3 weeks later and should bring a positive cash flow of about Net $500 a month.
D - Triplex acquired in April 09 cash…Inherited tenants were evicted and its been vacant pending renovation.Upon reno completed should bring positive cash flow of about $800 to 900 a month.Needs about 5K.
Last two years tax returns are pretty much useless.
Credit report been clean for the past 3 years but all cards maxed with a balance of about 27K and floating in the mid 600’s
Banks been ofering a refi on my main residence but i really will love to keep it as is as i pay no interest on the balance.
My idea was to move to either C or D and try putting a mortgage in it or doing a home equity loan.But it seems this won’t fly as they will do proof verification, This properties are located in an area where i would not want to live but if i have to i would.