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Old 11-12-2013, 02:06 PM
 
Location: Rural Central Texas
3,585 posts, read 9,027,381 times
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I had a realtor tell me that I would not like the neighborhood I was inquiring about becuase I was too light colored to fit in.


You can get all kinds of "well intentioned" but illegal advice. Use common sense when choosing what to believe.
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Old 11-12-2013, 04:34 PM
Status: "I am in preparation mode!" (set 20 days ago)
 
5,515 posts, read 5,531,859 times
Reputation: 4212
Quote:
Originally Posted by johnrex62 View Post
I had a realtor tell me that I would not like the neighborhood I was inquiring about becuase I was too light colored to fit in.


You can get all kinds of "well intentioned" but illegal advice. Use common sense when choosing what to believe.
That is illegal. How does the realtor know your background? You may be feel comfortable in that environment.
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Old 11-12-2013, 07:34 PM
 
8 posts, read 38,073 times
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Ok after reading this thread it is obvious I need to move in right away. I am new to the whole home buying process so I didn't know.

As far as kicking out one of the tenants, how do I go about that?
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Old 11-12-2013, 10:48 PM
 
4,787 posts, read 8,804,826 times
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There is a legal process for removing a tenant from a unit. You need to know your state laws in order to do so.

Normally, all rental units are subject to a lease. The leases transfer with the sale. For example, if one unit has a tenant whose lease expires in September of 2014, that tenant can stay until then even though you buy the property in a month. If the tenant is on a month to month lease, then obviously it is much easier to simply not renew the lease.

There may be other laws in effect in the state where the house is located that modify this. If an owner occupant wishes to use one of the rented units, there may be a way around the lease. In some places, an owner occupant can take possession of a leased unit before the lease is up. This is where you need to know when the leases expire in your house and what the exact laws are in that state. They vary. You can usually find out what the particulars are for that state by an internet search or by speaking to a local real estate attorney.
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Old 11-13-2013, 12:25 AM
 
8,273 posts, read 7,206,470 times
Reputation: 7798
Quote:
Originally Posted by VictorBurek View Post
It is legal to get the loan now and move in later but you must purchase the property as a investment loan and not a primary residence loan. The investment loan would require larger downpayment and the rate will be higher.
That's not always true.

In the state I live in it depends on how many mortgages you already hold as well as/OR the size of the property (over a 2 unit).

If you have more than 5 mortgages in your name (used to be in the 'teens) you have to take a commercial loan on the 6th. If you purchase a property that has more than two rental units in it (no matter how many mortgages you don't have) you have to take a commercial loan. 25% down and a 5 year "we'll let you know" adjustable.

The rate isn't necessarily higher, but the term is shorter. 20 years as opposed to 30.
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Old 11-13-2013, 12:50 AM
 
8,273 posts, read 7,206,470 times
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Quote:
Originally Posted by joeyskywalker View Post
Here is our situation: We are looking at buying a duplex. As I understand there are two loans, one for a house you live in and one for a rental property that your purchase. In order to get a loan that we can afford we have to plan on moving in one of the units. The lower unit has a one year lease and when it is up we will be moving in. The upper has a six month lease and we will rent it out again when they move out.

Is it legal to get the loan now, purchase the duplex and move in a year?

If this wasn't a fannie/freddie home where the buyer HAS to live in it for the $ paid (or it would have gone to an investor)- this shouldn't be such a big deal. I've never heard of a 60 day "gotta be all moved in mr/mrs owner) clause.

Who is doing your closing? Ask him/her (lawyer). If you don't have one, get one. Don't rely on you realtor.
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Old 11-13-2013, 12:51 AM
 
Location: Southern California
4,350 posts, read 4,961,067 times
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Quote:
Originally Posted by willow wind View Post
There is a legal process for removing a tenant from a unit. You need to know your state laws in order to do so.
You need to know the process on the local level city/town level which may have different rules and ordinance than the state level.

Seek a professional such as a real estate attorney or apartment owners association. Do you even know if there is a limit on how much you can raise the rent a year? Maybe the tenant can be bought out to leave, or you can just tell them that the rent is going up when their lease is up and they can break the lease and move if they want, but I wouldn't do it unless the seller is okay with it, otherwise you'd be chasing their tenant away.

Do you know how much the tenants have in deposit? Don't forget to get it back during the sale.

In every owner occupied loan I've done in California in the last 5 year there has been a affidavit of occupancy which states the term in which the borrower will occupy the property, but like I said , it is California.

Last edited by thelopez2; 11-13-2013 at 01:05 AM..
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Old 11-13-2013, 09:26 AM
 
4,548 posts, read 11,581,564 times
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Quote:
Originally Posted by Sawdustmaker View Post
That's not always true.

In the state I live in it depends on how many mortgages you already hold as well as/OR the size of the property (over a 2 unit).

If you have more than 5 mortgages in your name (used to be in the 'teens) you have to take a commercial loan on the 6th. If you purchase a property that has more than two rental units in it (no matter how many mortgages you don't have) you have to take a commercial loan. 25% down and a 5 year "we'll let you know" adjustable.

The rate isn't necessarily higher, but the term is shorter. 20 years as opposed to 30.
A borrower can obtain 30 year fixed rate Fannie/Freddie financing on non-owner occupied properties that are 1-4 units. This applies to all 50 states.
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Old 11-13-2013, 09:41 AM
 
Location: Southern California
4,350 posts, read 4,961,067 times
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Quote:
Originally Posted by TimtheGuy View Post
A borrower can obtain 30 year fixed rate Fannie/Freddie financing on non-owner occupied properties that are 1-4 units. This applies to all 50 states.
Fannie and Freddie don't technically financing anything. Someone else has to finance it first.

Sawdustmaker, Are you talking about NJ, are you unable to get a owner occupied loan when you currently have 6 mortgages?
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Old 11-13-2013, 09:46 AM
 
4,548 posts, read 11,581,564 times
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Quote:
Originally Posted by thelopez2 View Post
Fannie and Freddie don't technically financing anything. Someone else has to finance it first.

Sawdustmaker, Are you talking about NJ, are you unable to get a owner occupied loan when you currently have 6 mortgages?
Fannie & Freddie purchase the loans from lenders. They hold/own the note. Lenders service the loans. That is, they collect the payments from the borrowers and forward the funds on to Fannie or Freddie.
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