What happens when owner occupied lies to purchase Fannie Mae REO?
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It's not so much that the SELLER wishes for no FHA loans--it's that FHA loans require a property be move-in ready. It doesn't have to be 'pretty' but all living space must have working heat, all water faucets & toilets must be in working order, and hot water be available. This can be tricky when a property has freeze damage or a heating system that is damaged beyond repair. Sometimes the seller replaces these things, other time they don't. FHA also requires that all plywood floors be covered, and that there are no areas of peeling paint or broken windows (they've eased up on that a little, now a cracked window won't fail a FHA appraisal...) In the case of private well water & private septic, FHA standards can be even stricter than local ordinances: they must be X number of feet between well and septic. And dug wells (vs. drilled or artesian) will have a particularly difficult time to close.
There are also many condo communities that can't go FHA: if there is a high percentage of investor-owned (vs owner occupied) units, no fha. FHA also requires that the financial aspects of the condo community meed their standards: x number of dollars in reserves to cover things like roofs, siding, etc.
There are many things that can derail a FHA loan, and some of them have very little to do with things that the Buyer or Seller can remedy...
I was refering to the property is great move-in ready condition, sold by owner. The house was great and prices 10% higher than comps.
I have the same question. I just purchased a Homepath property (duplex) as an owner occupant. I paid cash, no financing, so that caused some suspicion. I will be going back and forth out of town often, and I don't want to be fined just for not being there whenever they do their check up. I already had a city inspector (Chattanooga TN) questioning me whether I really live here, or just an investor fixing it up. I thought maybe he does that check up for Fannie Mae, but doubt that.
So back to the question. Does anyone really know how Fannie Mae does their check up on owner occupancy?
I have the same question. I just purchased a Homepath property (duplex) as an owner occupant. I paid cash, no financing, so that caused some suspicion. I will be going back and forth out of town often, and I don't want to be fined just for not being there whenever they do their check up. I already had a city inspector (Chattanooga TN) questioning me whether I really live here, or just an investor fixing it up. I thought maybe he does that check up for Fannie Mae, but doubt that.
So back to the question. Does anyone really know how Fannie Mae does their check up on owner occupancy?
If it is truly your principal residence--and you don't secretly have another place which you treat as your principal residence--you have nothing to worry about.
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