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Old 10-12-2016, 02:24 PM
 
209 posts, read 263,947 times
Reputation: 337

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I have a general question about buying property in Henderson (or any out of state city for that matter). I'm a resident of another state and my wife and I are going to buy a second home in Henderson. As far as the bank will be concerned the Henderson house will be our second home, it will not be an investment, our primary home will remain in the state we currently live, and our source of income will be the income we make from our current jobs. We have plenty of money saved and will easily be able to make a 20% down payment. Hypothetically, once the Henderson property closes escrow and we are handed the keys, is there anything stopping us from saying screw it, quitting our jobs, selling our current home and moving to our Henderson house without jobs or any source of income other than our savings? I guess I'm asking: once we officially own the house is there anything the bank can do to cancel the loan if they found out we quit our jobs? Mind you, we will have about 5 years worth of mortgage payments in our savings after we move to Henderson, and we will look for jobs as soon as we move, but to qualify for the loan to buy the Henderson house we must remain employed by our current employers until we own the Henderson home, and we would like to take a couple months off and enjoy our new home/new city etc. before we go back to careers. Does the bank really care what your personal situation is once the loan is given to us? I've never heard of a situation where they ever contacted the home owner after the keys were handed over but I thought I'd ask.
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Old 10-12-2016, 02:36 PM
 
261 posts, read 235,156 times
Reputation: 370
I will bet the mortgage docs that you sing will state this is an income property , and if it does the lender has the right to foreclose on the property id you violate the terms.
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Old 10-12-2016, 02:58 PM
 
171 posts, read 219,044 times
Reputation: 106
Bank would't care if you make mortgage payments on time.
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Old 10-12-2016, 02:59 PM
 
Location: Las Vegas
3,631 posts, read 7,673,031 times
Reputation: 4373
Why not just finance it as a primary? If you can afford to finance both on your current wages (one as a second home) I don't see why they wouldn't approve you know your intentions to move out of state? Morgages on second homes are a less secure investment than a primary from a lenders perspective.
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Old 10-12-2016, 04:09 PM
 
209 posts, read 263,947 times
Reputation: 337
Quote:
Originally Posted by SoHoVe View Post
Why not just finance it as a primary? If you can afford to finance both on your current wages (one as a second home) I don't see why they wouldn't approve you know your intentions to move out of state? Morgages on second homes are a less secure investment than a primary from a lenders perspective.
Can I do that? Under that scenario my primary home would be in Nevada while our jobs and current home are in another state? Would this be considered a 'second' primary home? I guess I'm trying to avoid this conversation with the bank:

bank: so you live in AZ and want to buy a home in Nevada?
Me: correct
bank: is the Nevada home going to be your primary home, meaning: are you moving to Nevada?
Me: correct
bank: Do you have employment in Nevada
Me: Nope. We'll obtain that in a few months after we buy a house
bank: Sorry, you need to have a standing job in Nevada. We'll let you buy a house in Nevada as an investment property, but we're going to charge you a lot more interest.

This is what I am trying to avoid.
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Old 10-12-2016, 05:31 PM
 
Location: Rockford, IL
11 posts, read 13,504 times
Reputation: 34
I agree with TomKBL. Besides, if you have the assets to cover the payments for as long you say, they'd take that into consideration too. My mom hasn't had meaningful employment for over 20 years, and she was buying & flipping homes for a while. She didn't have any income, but the value of her investments made it so she could sustain payments on all her mortgages (5 at once at one time) so they made the loans. I wouldn't sweat it, do your thing.
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Old 10-12-2016, 07:20 PM
 
589 posts, read 390,868 times
Reputation: 241
Quote:
Originally Posted by boatpi View Post
I will bet the mortgage docs that you sing will state this is an income property , and if it does the lender has the right to foreclose on the property id you violate the terms.
i bet you are wrong.............lol. Banks lend on the NOW, not what you think might happen.
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Old 10-12-2016, 09:29 PM
 
Location: Las Vegas
66 posts, read 65,035 times
Reputation: 57
Was in the same boat, buying from out of state with an investment loan. We specifically asked the lender if we could move into the house in a few years. They had no problem with it and advised to refinance if the rates are better at the time for a primary residence.
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Old 10-12-2016, 11:14 PM
 
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,848,852 times
Reputation: 958
No longer a lender but there is nothing legally stopping you from quitting your jobs after the fact and making the home your primary residence. You won't have to finance as a rental as long as you qualify for all mortgages you may have.
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Old 10-14-2016, 12:20 PM
 
Location: Las Vegas, NV
49 posts, read 43,462 times
Reputation: 65
Quote:
Originally Posted by crabtrees View Post
Can I do that? Under that scenario my primary home would be in Nevada while our jobs and current home are in another state? Would this be considered a 'second' primary home? I guess I'm trying to avoid this conversation with the bank:

bank: so you live in AZ and want to buy a home in Nevada?
Me: correct
bank: is the Nevada home going to be your primary home, meaning: are you moving to Nevada?
Me: correct
bank: Do you have employment in Nevada
Me: Nope. We'll obtain that in a few months after we buy a house
bank: Sorry, you need to have a standing job in Nevada. We'll let you buy a house in Nevada as an investment property, but we're going to charge you a lot more interest.

This is what I am trying to avoid.

You can do a second home/vacation home. This may carry a lower interest rate than an investment property. Your scenario is correct by the way. They would deny you because you wouldn't have any source of income in NV unless your employer is able to tell them that you're able to live anywhere in the country without affecting your employment (e.g. working from home). Obviously, I'm guessing that's not your case.
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