Bank Loans

What a nice way to start! Care to give a little more description for those who don't know?
 
18 U.S. Code Section 344

Whoever knowingly executes, or attempts to execute, a scheme or artifice?
(1) to defraud a financial institution; or
(2) to obtain any of the moneys, funds, credits, assets, securities, or other property owned by, or under the custody or control of, a financial institution, by means of false or fraudulent pretenses, representations, or promises;
shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both.

Source:https://www.law.cornell.edu/uscode/text/18/1344


 
I'll take that as it's OK after a year of the owner occupancy.

You can keep posting articles about people committing mortgage fraud here, but the original question I asked wasn't about these issues.

You gotta know my "intention", my friend.  ;)
 
Mety said:
I'll take that as it's OK after a year of the owner occupancy.

You can keep posting articles about people committing mortgage fraud here, but the original question I asked wasn't about these issues.

You gotta know my "intention", my friend.  ;)

There is no year exception. What are you taking about? Read the statue. Let me ask you this. Do you even know why banks charge a higher rate?
 
Mety said:
I'll take that as it's OK after a year of the owner occupancy.

You can keep posting articles about people committing mortgage fraud here, but the original question I asked wasn't about these issues.

You gotta know my "intention", my friend.  ;)

What matters is what's in the mortgage note (the contract!) that you signed.  For FHA and Fannie/Freddie loans they require you to take occupancy within 60 days of signing and to continue occupying for a full 12 months.  There are exceptions for hardship in legitimate cases, but using an owner-occ loan for an investment property is not one of them.

Now it's possible you might find a non-conventional, non-FHA loan that requires you to owner-occupy the property for the entire life of the loan, and it's also possible you could find one with a period that is less than 12 months.  It all depends on what is in the mortgage note that you signed, but the industry standard is 12 months.
 
eyephone said:
Mety said:
I'll take that as it's OK after a year of the owner occupancy.

You can keep posting articles about people committing mortgage fraud here, but the original question I asked wasn't about these issues.

You gotta know my "intention", my friend.  ;)

There no year exception. What are you taking about?

Exactly. You've been missing the whole point of the conversation. It's OK. Miscommunications happen.

Here is an article I just found saying about that 12-month period. https://www.ovmfinancial.com/owner-occupied/

From the article:
"Guess what? Life happens! Whether it is planned to rent out the home in the future or circumstances change and it is OK and legal for a owner occupied property to be converted to a rental. Although, remember to change your insurance coverage and notify your lender of the address change."
 
Liar Loan said:
Mety said:
I'll take that as it's OK after a year of the owner occupancy.

You can keep posting articles about people committing mortgage fraud here, but the original question I asked wasn't about these issues.

You gotta know my "intention", my friend.  ;)

What matters is what's in the mortgage note (the contract!) that you signed.  For FHA and Fannie/Freddie loans they require you to take occupancy within 60 days of signing and to continue occupying for a full 12 months.  There are exceptions for hardship in legitimate cases, but using an owner-occ loan for an investment property is not one of them.

Now it's possible you might find a non-conventional, non-FHA loan that requires you to owner-occupy the property for the entire life of the loan, and it's also possible you could find one with a period that is less than 12 months.  It all depends on what is in the mortgage note that you signed, but the industry standard is 12 months.

Thank you! These are the information I was actually searching for.
 
Sorry I?m not gonna to trust a link of a blogger that you previously posted.



Mety said:
eyephone said:
Mety said:
I'll take that as it's OK after a year of the owner occupancy.

You can keep posting articles about people committing mortgage fraud here, but the original question I asked wasn't about these issues.

You gotta know my "intention", my friend.  ;)

There no year exception. What are you taking about?

Exactly. You've been missing the whole point of the conversation. It's OK. Miscommunications happen.

Here is an article I just found saying about that 12-month period. https://www.ovmfinancial.com/owner-occupied/

From the article:
"Guess what? Life happens! Whether it is planned to rent out the home in the future or circumstances change and it is OK and legal for a owner occupied property to be converted to a rental. Although, remember to change your insurance coverage and notify your lender of the address change."
 
No need to be sorry to me. I didn't write that blog nor have any affiliation with it. Just sharing common sense.

You can believe whatever you want to believe and choose to filter out whatever you want to filter out. No one's forcing you. But thanks for sharing all those legal terms. I myself have 0 interest in having a rental property, but I'm sure it'll help for some people out there.

eyephone said:
Sorry I?m not gonna to trust a link of a blogger that you previously posted.

Mety said:
eyephone said:
Mety said:
I'll take that as it's OK after a year of the owner occupancy.

You can keep posting articles about people committing mortgage fraud here, but the original question I asked wasn't about these issues.

You gotta know my "intention", my friend.  ;)

There no year exception. What are you taking about?

Exactly. You've been missing the whole point of the conversation. It's OK. Miscommunications happen.

Here is an article I just found saying about that 12-month period. https://www.ovmfinancial.com/owner-occupied/

From the article:
"Guess what? Life happens! Whether it is planned to rent out the home in the future or circumstances change and it is OK and legal for a owner occupied property to be converted to a rental. Although, remember to change your insurance coverage and notify your lender of the address change."
 
Just found this thread.

Liar Loan or SGIP would know better but after 1 year of primary residence, I think you can do what you want with your home... but as they have said, read your mortgage docs.

That being said, the buyers of one of the homes we sold said they would be owner occupant, but wanted us to rent back for as long as we wanted. After we moved out, our ex-neighbors told us it's basically a rental as it's been different families over the years.

So people do this all the time. New homes also have some "rule" about not reselling until after a year of ownership, but we see new homes get resold once in a while in shorter than a year.
 
irvinehomeowner said:
Just found this thread.

Liar Loan or SGIP would know better but after 1 year of primary residence, I think you can do what you want with your home... but as they have said, read your mortgage docs.

That being said, the buyers of one of the homes we sold said they would be owner occupant, but wanted us to rent back for as long as we wanted. After we moved out, our ex-neighbors told us it's basically a rental as it's been different families over the years.

So people do this all the time. New homes also have some "rule" about not reselling until after a year of ownership, but we see new homes get resold once in a while in shorter than a year.

You never know. Things happen. Some people might have planned to live there but it might turn out they can't move in for whatever reason. It's not always a planned crime although I guess most cases would be. So after a year, it's kind of "OK" to rent it out? That's what I thought too. Not that we're planning to do that, but good to know. I can't imagine renting out our place to a stranger for some reason. But I guess many folks do that for investment purposes.
 
Mety said:
irvinehomeowner said:
Just found this thread.

Liar Loan or SGIP would know better but after 1 year of primary residence, I think you can do what you want with your home... but as they have said, read your mortgage docs.

That being said, the buyers of one of the homes we sold said they would be owner occupant, but wanted us to rent back for as long as we wanted. After we moved out, our ex-neighbors told us it's basically a rental as it's been different families over the years.

So people do this all the time. New homes also have some "rule" about not reselling until after a year of ownership, but we see new homes get resold once in a while in shorter than a year.

You never know. Things happen. Some people might have planned to live there but it might turn out they can't move in for whatever reason. It's not always a planned crime although I guess most cases would be. So after a year, it's kind of "OK" to rent it out? That's what I thought too. Not that we're planning to do that, but good to know. I can't imagine renting out our place to a stranger for some reason. But I guess many folks do that for investment purposes.

The occupancy rider (doc) will note it.
 
I would say that is a Blanket statement. Unless you seen all the loans or know people that deal with multiple banks I wouldn?t say that.
 
Back
Top