kane@hou2b.UUCP (J.KANE) (04/24/84)
The mortgage rates quoted for an owner occupied home are significantly
lower than those rates for non-owner occupied housing. In addition, the
minimum down payment on an onwer occupied home is lower than the minimum
for non-owner occupied housing.
I was told that if you wish to buy rental property that you can lie and
tell the mortgage company you will be occupy the home. By doing this you can
take advantage of the much lower rate and downpayment. I realize I must
forward any U.S. Mail to my real house and that I would have to buy a
homeonwers policy on the rental property. I realize that you can only do this
once to a bank, ( can not have more than one mortgage with them ) and that
the rental property you claim you are moving into should be in the same
ball-park as your present home ( not significantly lower ).
How would the bank ever know you were going to rent it out?
Is there something missing here?
--kane!hou2bdys@homxa.UUCP (D.SZE) (04/24/84)
Regarding owner or non-owner occupied housing: How long do you have to occupy a place to qualify it as owner occupied? Certainly, if you lived in it for several years and then rented it out, that should be OK. How about for one night? David Sze Bell Communications Research homxa!dys
burton@fortune.UUCP (04/27/84)
#R:hou2b:-26500:fortune:15300005:000:960 fortune!burton Apr 26 12:33:00 1984 About five years ago, when we planned to move from our condo to a house, we determind that we could keep the condo, *if* we could get a 2nd mort. on the condo, for downpayment on the house. the numbers worked out OK. As an owner, I could get a second up to 80% of appraised value, as a non- owner, only 70%, and at a 1/2 % premium on the rate. So ... we arranged for a lon close on the house, and told the bank that the money was for a business opportunity. And we forwarded our mail. The loan came through about 45 days before we had to move, and it all worked out. After 18 months, I notified the bank of a change of address. Stupid bank, they never checked up if I still lived in the condo. ... That was my way of paying them back for the rotten service I'd gotten from them on ly checking and charge accounts. A condo is simpler than a house, and that includes master insurance. But, if you bank is as stupid was mine was, then it's no problem.