Home Buying in 60647>Question Details

Julia, Home Buyer in Chicago, IL

Canventional loan, cannot move in in 60 days!

Asked by Julia, Chicago, IL Thu Sep 20, 2012

Hey, we are in the process of buying our first home. We have made an offer for a multi family, two flat. The estimate of the closing date is in 7 days and today our lender told us that there is an issue and we might not qualify for the loan. The issue is that we are getting a conventional 15/85 loan and are required to move in in 60 days. the property is fully rented and leases expire in 7 months. the tenants don't want to move. what should we do??? is there really a high chance of getting denied?P.S. the lender knew about the issue from day 1!

Help the community by answering this question:


It appears that you are obtaining the loan as an owner occupant. At closing you will sign paperwork that you plan on moving in within 60 days - if not then you are possibly committing fraud. Your LO will not be on the hook, you will be. therefore proceed with caution.


1) You and/or the seller offer the tenants CASH to move out within 60 days so therefore you can purchase as owner occupant.

2) Delay the closing for 5 - 6 months assuming the seller agrees

3) Purchase now with an investor loan - you will need to put down 25%.
1 vote Thank Flag Link Fri Sep 21, 2012
That is section 6 in the standard conventional mortgage. Some loan officers can’t spell mortgage, let alone see how all of the pieces fit. I would escalate it to the LO’s supervisor, they can’t “work around” the problem nor do you want them to, it places you in danger. However, you might get reimbursed for inspections and appraisal, etc.

Check with the seller, they might be willing to wait for 5 months because owner occupants will usually pay more for a property than an investor. Other owner occupied buyers will have the same problem. I would still ask to speak with the LO’s supervisor, the appraisal, credit report etc will expire before then. Good luck,

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
1 vote Thank Flag Link Fri Sep 21, 2012
I dont' think that you should commit mortgage fraud by signing the paperwork. The underwirter probably saw the leases and didnt like the loan. If you are able to delay the clsoing, that would be best. Or if the seller can offer cash to have the tenant move. There is usually a 60 day clause in leases that allow the owner ask the tenants to leave. Please let me know if I could help you with this transaction. Joanna 773-327-3580.
0 votes Thank Flag Link Tue Sep 25, 2012
pay someone to move out and move into that unit
0 votes Thank Flag Link Mon Sep 24, 2012
If it's making you scratch your head, don't do it! Banks are getting tough and it may not be worth the punishment.

read the article below.

Good luck!
0 votes Thank Flag Link Fri Sep 21, 2012
You asked:
how will the bank know if we live in the property or no?

...the bank may never find out, BUT you will be signing papers stating that you will be moving in within 60 days. If they decide to do some quality control and determine that you are not living there, then you are in breach of the closing documents and could be liable of mortgage fraud. The pocketbook and the reach of the bank and federal government are far greater than any one individual can normally handle.
0 votes Thank Flag Link Fri Sep 21, 2012
how will the bank know if we live in the property or no?
0 votes Thank Flag Link Fri Sep 21, 2012
If you planned on getting an investment loan, which would be pretty apparent if your buying a multi unit building, all parties probably knew of this. You would need to put more money down, and this loan would work out fine.
0 votes Thank Flag Link Fri Sep 21, 2012
the lander knew the situation and said he could work around it that's why we decided to proceed.
0 votes Thank Flag Link Fri Sep 21, 2012
How did the lender know of the issue? It must have been that you told him. If so then YOU also knew of the problem. Why did you continue with the loan?
0 votes Thank Flag Link Fri Sep 21, 2012
Hello Julia,

I am truly sorry to hear that you are going through this issue. If the loan officer knew about this issue from the beginning then it should of been addressed at that time. You should talk to your attorney about extending the contract date. This will give you some time to hire a qualified loan officer that has the experience to help you. I recommend speaking with Tom Meneses from Standard Bank & Trust ( 312-952-2126). He has been in the mortgage industry for years and is upfront about what issues might arise. He also has the flexibility to rush this transaction so the sellers don't get upset.

I hope you find a resolution Julia and get the home you want. Good luck!
Web Reference: http://www.myownhome.info
0 votes Thank Flag Link Fri Sep 21, 2012
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