How long does a person have to live in a house purchased owner occupied before they can move on? If you know please add any advice as to the hows and whys and prepayment penalty etc
thanks
Unofficially: 1 year. It also depends on the lender. FHA not good to play with.
When you change the insurance is when the lender is tipped off. I've never heard of a problem after a year. However, you might want to set up LOC's before moving while it is still owner occupied.
This is not to be construed as advice. You should seek the appropriate counsel.
[addsig]
If you don't live in them, does this mean that they are 100% homesteaded. Is insurance setup as non-owner occupied? You must use a different lender every time or something because mine said this cannot be pushed through the desktop underwriting....hum. Anyway, thanks for the tips.
Homestead usually applies to just one home, the owner-occupied home.
Mortgage application states you have an "intent to occupy" the home, and at closing there is an affadavit indicating you intend to occupy the home.
FHA/VA audits will expose the non-owner occupancy and if in the first year you're caught the loan will be called and likely be ruled inelible for future FHA/VA deals.
Conventional conforming mortgages have a 1 in 10 chance of being audited. Tipoffs are changes in payment coupon mailing addresses, or insurance changes.
Certainly you'd need to change your hazard insurance coverage if the home turns into a rental.
The reference to Desktop Underwriting is to the automated underwriting systems of Fannie and Freddie. Basically this means conforming loan terms, and non-owner occpied conventional loans have larger downpayment requirements and slightly higher rates. If your mortgage broker is using automated underwriting to get a 100% loan, it must be an owner-occupied status.
So if they've already sold a conventional conforming loan to a lender as owner-occupied, it would be a problem to do another owner-occupied loan to you through the same lender.
Non-conforming lenders have 100% non-owner occupied loans if the credit scores are good with full documentation. Many of these don't have a limit on the number of mortgages they'll do to one person. Of course, the rate will be a little higher than a conforming loan, but no fraud is involved and no looking over your shoulder.
sorry I should have mentions I would keep the house as a rental, just move to a different house
Unofficially: 1 year. It also depends on the lender. FHA not good to play with.
When you change the insurance is when the lender is tipped off. I've never heard of a problem after a year. However, you might want to set up LOC's before moving while it is still owner occupied.
This is not to be construed as advice. You should seek the appropriate counsel.
[addsig]
If you don't live in them, does this mean that they are 100% homesteaded. Is insurance setup as non-owner occupied? You must use a different lender every time or something because mine said this cannot be pushed through the desktop underwriting....hum. Anyway, thanks for the tips.
Homestead usually applies to just one home, the owner-occupied home.
Mortgage application states you have an "intent to occupy" the home, and at closing there is an affadavit indicating you intend to occupy the home.
FHA/VA audits will expose the non-owner occupancy and if in the first year you're caught the loan will be called and likely be ruled inelible for future FHA/VA deals.
Conventional conforming mortgages have a 1 in 10 chance of being audited. Tipoffs are changes in payment coupon mailing addresses, or insurance changes.
Certainly you'd need to change your hazard insurance coverage if the home turns into a rental.
The reference to Desktop Underwriting is to the automated underwriting systems of Fannie and Freddie. Basically this means conforming loan terms, and non-owner occpied conventional loans have larger downpayment requirements and slightly higher rates. If your mortgage broker is using automated underwriting to get a 100% loan, it must be an owner-occupied status.
So if they've already sold a conventional conforming loan to a lender as owner-occupied, it would be a problem to do another owner-occupied loan to you through the same lender.
Non-conforming lenders have 100% non-owner occupied loans if the credit scores are good with full documentation. Many of these don't have a limit on the number of mortgages they'll do to one person. Of course, the rate will be a little higher than a conforming loan, but no fraud is involved and no looking over your shoulder.