Financing in California>Question Details

Home Buyer, Home Buyer in 92203

Has anyone heard of or had experience in obtaining an occupancy waiver from their lender. (changing from owner occupied to investment property)?

Asked by Home Buyer, 92203 Tue Jul 26, 2011

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If there was an extenuating reason for you to need to move out of a home you initially occupied then it is possible. I had a client who purchased a home with USDA financing and was being relocated 10 months afterwards, they were granted approval from USDA and purchased a new home with FHA financing. Also with most mortgages if you buy as owner occupied you are not required to live there forever, most security instruments just spell out that you must occupy the home for the 1st year of the mortgage - so read yours as you may have already met the amount of time you have to occupy the home for.

If you are talking about a home you have not yet purchased (after all your name is "Home Buyer"), and you are already considering that you'd need an occupancy waiver after you move in, then I'd recommend you purchase as an investment property to avoid any potential occupancy fraud accusations.
0 votes Thank Flag Link Wed Jul 27, 2011
Just as an update. We did end up getting a waiver granted to us for extenuating circumstances, but it was quite the process. It was through Wells Fargo (the lender) and Fannie Mae (the investor). They hadn't heard of or done one before, so it was like pulling teeth, but after getting a hold of an executive and sending detailed explanations and citing legal wording in our Deed of Trust documents, they finally came through after a couple of weeks. It was a miracle that no one thought was possible.
1 vote Thank Flag Link Thu Jul 28, 2011
Probably no one does this. As long as you have resided there for one year or longer you should be OK.

Happy funding, Rudi
Web Reference:
0 votes Thank Flag Link Thu Jul 28, 2011

I haven't seen any lenders issuing an occupancy waiver. If you're switching to an investment, some lenders may require additional lender specific forms to be completed to support the investment purchase.

Michael Abram
First Capital Mortgage
NMLS #235060
Direct: (310) 434-1718
Fax: (310) 451-6407
0 votes Thank Flag Link Tue Jul 26, 2011
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