Buying A Invesment As A Owner Occupied
Has anybody had buy a rental property saying tha it will be owner ocupied?
how a lender can verify that will be owner ocupied.
I have a single family house with my husband , we are planing to buy a multyfamily just on his name.
His has 744 credit score and we will put 20%
what is the best way to do it. We were planing to say that he will move, or that we will sell our house.
I usually don't jump right in on posts that are asking for trouble. But I have to say nothing like starting off your stay at TCI with questions about deception. Or at least that is how it sounds to me.
Why bother jepordizing a good credit score by taking the chance of getting your loan called in because you don't live there? :-x
Why would you buy this OO? (owner-occupied) Especially since you are putting so much money down and the FICO is so high, there is no need to defraud the lender by telling them you will be occupying it. When you buy something OO, you have to sign a paper saying you are intending on occupying the property subject to a fine and/or imprisonment. :-o
[addsig]
Putting false/deceitful information on your loan application is LOAN FRAUD. This is a felony, and you can get yourself in big trouble.
Really NOO (non-owner occupied) is not that much more expensive. It is a small fee to pay to hold your head up high....and be able to do more real estate deals.
With that score and amount down you should be able to get financed fairly easy and a good rate. You may or may not get caught, but what happens if you do? Is it really worth it for that extra point of savings? You are only asking for trouble when you don't need to.
I would hope and pray the Feds aren't reading the board because that is HIGHLY illegal! Don't go advertising that you are going to be doing that. Lenders actually have people that will go and knock on the doors and check... I've had that happen to a customer before. And if your bank knows about your plan to do that, you and your bank will be in big, big big trouble (this is FRAUD!) and owe some big big big fines! Just call it non owner occupied. WIth that score and that down payment you can go Fannie/Freddie no problem therefore your rate for a 30 year fixed will be about 6%.
Its really interesting to me that this question is almost identical to the one located How To Finance Rental Properties.....
and yet the answers are almost exactly opposite.
I do think there is some difference if you actually move into the house for some period before buying another and moving there and renting the first. But who wants to move 4 or 5 times a year?
Anyway the interest rate boost is a lot cheaper than the fine if you get caught. Loan fraud is serious business.
thanks for your advice, i am new in the investing business. I check with some lenders and i got a excelent rate. 5.75 for a fixed rate.