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I just purchased a home under a home owner occupied standard mortgage (sorry that's probably not the technical name) and now I have an opportunity to rent the unit out. I currently have home owners insurance on the property, however, I contacted my agent today and she said she would need to advise the bank of the insurance change. This would put up a red flag to the bank would it not? Do I have any other options? I'm afraid of getting audited. Would the red flag that I purchased a home under a standard mortgage and now would be renting get the bank's attention?
I just purchased a home under a home owner occupied standard mortgage (sorry that's probably not the technical name) and now I have an opportunity to rent the unit out. I currently have home owners insurance on the property, however, I contacted my agent today and she said she would need to advise the bank of the insurance change. This would put up a red flag to the bank would it not? Do I have any other options? I'm afraid of getting audited. Would the red flag that I purchased a home under a standard mortgage and now would be renting get the bank's attention?
If you have already closed on the property then I doubt it will cause any problems as long as mortgage fraud wasn't involved. Bank is only worried about getting paid every month. If you continue making the payments then the bank shouldn't be concerned about what you are doing with your property. That's the point of buying insurance...
Now if you haven't closed on the property yet, then that changes everything.
If you have already closed on the property then I doubt it will cause any problems as long as mortgage fraud wasn't involved. Bank is only worried about getting paid every month. If you continue making the payments then the bank shouldn't be concerned about what you are doing with your property. That's the point of buying insurance...
Now if you haven't closed on the property yet, then that changes everything.
I closed on the property, however, I signed the addendum that says it will be owner occupied. I guess i'm just worried with all the changes to the industry that they are paying closer attention.
What does "just purchased a home" mean? Like yesterday? Last week? Last year? If you purchased a home with an owner occupied mortgage, you signed paperwork that said you wold occupy the property within 60-90 days, depending on which loan program you did.
Have you moved into the property? How long have you lived there? If this was a very short time, yes red flags will go up because it might not even have been sold to the final destination yet. If you're talking a few months ago is "just" or a year ago, then you're not going to have any issues.
What does "just purchased a home" mean? Like yesterday? Last week? Last year? If you purchased a home with an owner occupied mortgage, you signed paperwork that said you wold occupy the property within 60-90 days, depending on which loan program you did.
Have you moved into the property? How long have you lived there? If this was a very short time, yes red flags will go up because it might not even have been sold to the final destination yet. If you're talking a few months ago is "just" or a year ago, then you're not going to have any issues.
So basically you committed mortgage fraud. You bought a home as an owner occupier and signed paper work indicating that you would inhabit the property and now, not a month later, you want to rent it out.
Gee, I don't know, you think a ref flag might go up ? What do you think ? If you own two homes, then you also said this would be your primary residence, did you not? If you bought this property as an investment home or a second home, then you would not have been required sign that addendum. Then we would not be having this discussion.
Thus, you wanted the lower down payment and the typically lower mortgage rate by purchasing as an owner occupier. Now you're trying to figure out how to have your cake and eat it too without being found out
No worries, I hear the "white collar jails" are now serving bologna instead of pb&j.
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