Hollie - Very Trickie!
If you are applying for both properties simultaneously as owner occupied properties that would be fraud...
and understand that if you are applying for one as o/o and the other as investment, as Austin mentioned, you have to be able to carry both...and rental income does NOT "wash out" the expense of the rental property. It's alot more complicated than that.

If nothing else, inquiries will show up by the other Lender on your credit report and you will have to explain to Bank A your relationship with Bank B.

Speak with your mortgage rep and be honest...let him/her know that your best friend is considering buying 2 properties simultaneously and see what he advises for your best friend. Wink Wink

Hi Hollie,

There is a good chance both lenders will not find out about your simultaneous transactions, but you can't be sure. If you can carry the debt on both properties and still qualify it's probably best to disclose both purchases to both lenders. Is this the case?

If you are financing the primary residence with owner occupied financing and the investment property with investment property financing and you can hold the debt on both, you really have nothing to hide. Just tell them you got into contract on a primary residence and then found a great deal on an investment property.

Hollie,

It's always best to be upfront with your mortgage broker or direct lender (not to forget your attorney, your realtor and your cpa.) You'll gain from experienced professional advice and save yourself. Often there are ways to achieve your goals and only require a bit of additional paperwork.

Remember there are only so many lenders and everything revolves around your credit report. If they don't already know now - they most certainly will discover soon enough and you may have some explaining to do.

All my best,

Mike Ackerman
Building Trust for Life
Zephyr Real Estate
415-695-2715
ABZ@ZephyrSF.com