What To Tell Lender When Intent Is To Flip
I've been told to not inform lenders when one's intent is to flip a property. So what could they be told? I don't wanrt to tell them it is for a residence - I just refinanced my house so I can't say the new property is for residential.
Any suggestions?
Thank you,
Marlene
why not say investment property . non owner
Hello,
You should still be able to tell them it is for your residence and that you will live there.If you are going to rent it out you need to get an investor loan. If you are going to fix it and then flip it tell them it is for your residence then sell it. It should be alright.
I am getting an equity line on my residence to be able to pay the down for this property, so I am afraid of telling them the property to flip is a residence.
Thoughts?
LilDell is right!
There is no reason to lie. Say that you want a non-owner occupied loan.
They might suggest you get a loan that is easily assumable by the new owners OR that you get a "negative amatorization" loan to keep your payments small since you won't be owning it very long.
If you try to tell the mortgage company that it is your residence when it actually an investment property, this may consititue FRAUD (any lawyers that can answer this for sure?)
I believe if you have a loan that is subject to, and you took over the payments, then you do not want to tell the lender that you are the new owner of the property because there is a chance that the lender may call the full amount of the loan due.
But your mortgage broker is TRYING to get you a loan. They don't care if you set the house on fire, all they care about is that they made you a loan, they get their commission and hope that they will get more business from you or your friends.
Hope This Helps,
Mrs. Meltzer