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%.
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 LOâ€™s supervisor, the appraisal, credit report etc will expire before then. Good luck,
NMLS # 6395
Financing Kentucky One Home at a Time
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.
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!