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Old 09-10-2013, 01:11 PM
 
5 posts, read 20,454 times
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Hi,

I had a question and want to see what my options are. I recently bought a condo as an investment property (also my first property). I planned to rent condo out for a year or two until I was ready to move in.

If I wanted to move into the property now can I do so? what are my options to change to owner occupied. My broker told me that the rule was the first 12 months has to be non owner occupied then I could do whatever i wanted.

I just want to see what my options are.

Thanks
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Old 09-10-2013, 01:17 PM
 
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Just move in. Tell no one. Use a post office box or relative/friend for a legal address. It's not like they have anyone enforcing this stuff, but don't be obvious about it.
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Old 09-10-2013, 02:29 PM
 
Location: Austin
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I don't think there is anything that will happen when you accept a HIGHER interest rate as an investment and then move into the house for your primary residence. You can't change the rate unless you refinance.

There are strict cases where you can't buy an owner occupied and obtain a LOWER rate and then immediately put tenants into the house. That's mortgage fraud because you accepted a lower rate without the intention of living in the house.
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Old 09-11-2013, 01:20 PM
 
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Was your broker was talking about tax reasons, instead of legal reasons, when he mentioned the "12 months"? Did some of the down payment in this condo come from another investment, a retirement account or some tax-advantaged funds?
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Old 09-12-2013, 09:14 AM
 
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I think that it's pretty obvious that you can, and I'm wondering why you would think that you couldn't. Other than that, you really didn't give us enough information for us to advise you on this.
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Old 09-15-2013, 07:12 PM
 
Location: MID ATLANTIC
7,598 posts, read 17,618,792 times
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Quote:
Originally Posted by ETex2 View Post
I think that it's pretty obvious that you can, and I'm wondering why you would think that you couldn't. Other than that, you really didn't give us enough information for us to advise you on this.
I think LOL_What nailed the only reason why the OP can't move in -
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Old 09-17-2013, 05:41 AM
 
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Quote:
Originally Posted by LOL_Whut View Post
Was your broker was talking about tax reasons, instead of legal reasons, when he mentioned the "12 months"? Did some of the down payment in this condo come from another investment, a retirement account or some tax-advantaged funds?

The issue was that I didn't qualify for the loan amount I wanted for a owner occupied, But I qualified if it was an investment loan. (since I would be renting it out it adds to my income).
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Old 09-17-2013, 06:48 AM
 
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If the OP has only a single piece of property I find it hard to imagine what sort of loan they obtained that they could only qualify if the income from renting that property out was part of the qualification...

Not saying that some lenders might not do this, just sort of odd -- generally it is easier to qualify for owner occupied financing. I imagine that if someone had a large sum of cash that they used for an unusually high down payment, had very modest income and were willing to accept higher non-owner occupied interest rate the scenario described could come into play but I would caution that any lender actually encouraging this sort of scheme is not to be trusted.

Would almost certainly have been better to find a less costly unit, use less of the cash for downpayment and accepted lower owner occupied interest rate.
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Old 09-17-2013, 07:08 AM
 
6,359 posts, read 7,324,210 times
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Quote:
Originally Posted by damaster32 View Post
The issue was that I didn't qualify for the loan amount I wanted for a owner occupied, But I qualified if it was an investment loan. (since I would be renting it out it adds to my income).
Wow--I never saw that one coming. Imagine, a lender that thinks that rental units are more secure than owner occupied housing.
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Old 09-17-2013, 08:47 AM
 
5 posts, read 20,454 times
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Quote:
Originally Posted by chet everett View Post
If the OP has only a single piece of property I find it hard to imagine what sort of loan they obtained that they could only qualify if the income from renting that property out was part of the qualification...

Not saying that some lenders might not do this, just sort of odd -- generally it is easier to qualify for owner occupied financing. I imagine that if someone had a large sum of cash that they used for an unusually high down payment, had very modest income and were willing to accept higher non-owner occupied interest rate the scenario described could come into play but I would caution that any lender actually encouraging this sort of scheme is not to be trusted.

Would almost certainly have been better to find a less costly unit, use less of the cash for downpayment and accepted lower owner occupied interest rate.


So what should I do now. I already closed and the place is mine.
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