serial owner occupant financing

Hi, everyone

I am very new to this. I am about to purchase a new home using a no doc loan program (65%/25%/10% down). The down payment is from a home equity loan on my current home which I plan to rent out while we fix up the new place and live there for 9 to 12 mths. Fix up money coming from equity loan as well. I’m hoping to refi and move on to the next property. My question is how does one keep doing this forward. The interest rates are high on these programs. Is there a point where rental income can be used so a regular mortgage is possible? Is there a time frame that one has to stay in a OO home for it to count? Any imput is greatly appreciated,

Howdy Debtslavdvm:

You have a good solid plan. The more property you own the higher the rates will be especially if you borrow as an investor. The oo will work as long as you live there long enough to establish a residence. No 30 days is not enough. I believe a school term would be appropriate. How about moving every summer. This is just my opinion but I believe it should be long enough to establish that you lived there and wanted to move up and get a different house for whatever the reason. I do not know of any case history other than lenders and Hud are watching closer than ever before from what I have read. A friend and VP of a S7L many years ago did this with new homes. He would build and sell and build and sell every year. One good way to build a retirement nest egg and live in a new house every year. COOL

Thanks for the response!

Do you know if there is ever a point where I can declare my rental income as income and use it to qualify for a regular OO mortgage?

Howdy Debtslavdvm:

I did it when I built my house. I did not want to do full doc and did stated income. Told them I made $6K per month and sent them copies of bank statements to verify income. At the time I was collecting $10K to $12K per month from houses that I owned. No problem with the rent as income for OO.

I actually qualified for a conv mortgage. So for the next house should I try stated mortgage? I could then use income from my currently (I hope) rented home(s) plus my regular job as income. In your case, they were just looking at deposits not net profits for your stated loan, right. Thanks again

Howdy Debtslavdvm:

If you can do full doc it is a but harder but the rate is a bit cheaper. You are right with my loan all they looked at was the deposits. Some want 6 months and some 12 and some 24 months bank statements. No P&L statements or tax returns or W2’s or 1099’s etc.


I think I got snuckered(only word I could think of). My property is a foreclosure and as part of the condition of sale, I had to be preapproved by their mortgage comp. My own broker had worked up a deal for me. Of course they wanted a quick close Sept 30. Well it just so happens that their agent stopped returning calls, etc for about 4 days. So the contract got held up. So now because of issues w/ apprasials etc, even my broker is saying take their financing because I probably won’t be able to make that deadline. The only reason I’m not hopping mad is that they gave similiar terms w/ actually cheaper closing costs