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Investing_so…, Home Buyer in Fort Bragg, NC

I'm military buying a house that I’ll live in for a year then rent it out when I move. If I'm ordered to move sooner (<1 yr) is it

Asked by Investing_soldier, Fort Bragg, NC Sat Feb 18, 2012

mortgage fraud? 30 year loan with 20% down.
Eventual rent will cover the full mortgage, property manager and other expences.
Current preapproval is assuming it's a principle residence....do I need to change it to an investment property?

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Answers

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If you go into the purchase with the intention of moving, then you need to disclose this. It does not necessarily mean you do not consider it your primary residence. It is a matter of your intention.

This is a gray area, but I would say that is sounds like you do intend for it to be an investment property if you don't intend to consider it your primary residence, or you do not intend to move back into the home after you get back from deployment.

But if you intend to live in it, then if deployed to rent it for a temporary time, then upon return you intend to reoccupy the property as your primary residence, then I think that's fair to say it is your primary residence since your job/deployment has changed through no fault of your own.

Just disclose this to your loan officer / banker when you apply for the loan. Disclosure is the name of the game to avoid fraud. Put it in an email or document your conversation. But with 20-percent down, there may not be a difference in the loan type or interest rate with many banks.
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Web Reference: http://www.natewolf.com
2 votes Thank Flag Link Sun Feb 19, 2012
Hi, your best bet is to discuss this with the broker that pre approved you, they will guide you accordingly. there are investment clauses but every case is different.

Chris
1 vote Thank Flag Link Sat Feb 18, 2012
All you know is that you'll PCS at some point in the future.. unless you are already negotiating with your detailer/CM you don't know when your next orders are going to be cut. It could be 366 days from the day of closing. There is no date to disclose. At this point, all you can disclose is that you are military and a PCS is inevitable!

What if you switch to an investor loan and then get extended?

Your intent is to occupy the property for a year or until you PCS. It's the military, you don't know your planned rotation date for certain. Your scenario could happen to anybody ... does that make all SVC MBRs investors?

Just some food for thought! Good luck & best wishes.
0 votes Thank Flag Link Thu Mar 8, 2012
Disclose, disclose, disclose. This can be a funny and grey area, but you you disclose your intent it will work out better for you in the long run. Becasue you are inthe military, relocating is always a possibility. However renting or investment property and primary residence are to different dog in a fight and banks look at them very differently.

Now if you intend to live in it, then if deployed to rent it for a temporary time, then upon return you intend to reoccupy the property as your primary residence, then I think that's fair to say it is your primary residence since your job/deployment has changed through no fault of your own. (As was stated by Nahan Wolf in his post below)

You need to speak with your broker or call me soon so I can help you further.

Jeremy L. Hollingsworth
910-978-0685
I do not sell home, I sell DREAMS!
0 votes Thank Flag Link Thu Mar 8, 2012
So what you are saying, Jeremy, is exactly what I already said?

Gray area. Disclose. And you copied and pasted my answer about deployment? Seriously?

Jeremy, you are a joke if you are taking other Broker's opinions and Plagarizing them as your own thoughts.
Web Reference: http://natewolf.com
0 votes Thank Flag Link Thu Mar 8, 2012
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