Home Buying in 20148>Question Details

Christopher…, Real Estate Pro in 20148

Is it OK to rent out my home soon after refinancing as owner occupied?

Asked by Christopher Forys, 20148 Tue Dec 11, 2012

When I sign closing documents, does it ask about my intent to occupy the property, or only my current occupancy status?

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Answers

3
When you close you sign a document that states your intention is to occupy the home.
0 votes Thank Flag Link Wed Dec 12, 2012
No it is not okay, there are multiple documents in the process plus the mortgage that all define “owner occupied”. The reason most people apply for this type of loan when they have no intention of living there is to get a better interest rate and or closing cost. Misrepresenting ANYTHING when financing a property is fraud, serious federal crime that carries equally serious penalties. Standard mortgages that are owner occupied contain a clause that the borrower is going to live in the home for at least 12 months after the date of the closing, good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Wed Dec 12, 2012
You really need to talk with your lender. To me, this sounds like you may be intending to mislead your lender. Not a good idea.
0 votes Thank Flag Link Wed Dec 12, 2012
Thank you for the advice. My intent was NOT to mislead anyone. I was simply trying to find out how long, if at all, Virginia lenders require you to live in your house after refinancing. My intent was to either live up to what the requirements were, cancel the refinancing before we close, or get a new quote based on my intention to relocate. My desire NOT to mislead anyone was why I reached out here and why I had already talked to my lender and notified him of my plans to move (BTW, he told me that they only require that you occupy the home at the time of closing).
Flag Wed Dec 12, 2012
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