Home Buying in Seattle>Question Details

tmscarpa, Home Buyer in Seattle, WA

What are the timeline rules for moving into a duplex on an owner/occupied multi-family conventional mortgage with 20% down?

Asked by tmscarpa, Seattle, WA Wed Aug 14, 2013

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With regard to actually closing on the property it will all depend on your lender and their timeline for closing. My suggestion is to have ALL your documentation that a lender will require ready to go to speed up the process. With regard to actual occupancy - lenders will require you to move in within 60 days after closing in order for it to be owner occupied.
0 votes Thank Flag Link Wed Aug 14, 2013
A little late to the party, but allow me:

As a direct lender, we would require 60 days; however, there are exceptions if justified. Even simpler, doing the loan as a second home would not require you to move into it in the near future and results in no increase to rate/points. No, you do not need to own a primary residence in order to purchase a second home. It would be defined by the logistics....one cannot commute XXX miles to live in the primary home.

First, FHA is specific: 60 Days maximum. A lender might make an exception...strong focus on MIGHT.

All my best,

Deborah
NMLS #279125
WJ Bradley

"We Listen. We Care. We Deliver."
1 vote Thank Flag Link Wed Sep 18, 2013
Hi Tmscarapa,

In most cases you have to "occupy" the home as your primary residence within 30 days of closing. You maybe able to get an exception to do 60 days but that's probably as far out as you can go.

As far as how long you have to live in the home as your primary residence it's typically 1 year but you'll need to read your closing documents very carefully.
1 vote Thank Flag Link Wed Aug 14, 2013
There is an Occupancy Affidavit that spells out when you have to officially move in it is usually in your closing documents, or you can get a copy from Escrow.
0 votes Thank Flag Link Thu Jan 23, 2014
As you can see from the answers below, we do not really understand the question you are asking. Best thing for you to do is speak to someone directly to get your question asked.

Good luck to you in any case,
Jirius Isaac
Isaac Real Estate Team
Champions Real Estate Services
TriStar Finance #MLO-107799
Office: 425-483-6849 Cell: 206-841-9976
Winner of Seattle Magazines 5 Star
Real Estate Agent Best in Client Satisfaction Award
Mortgage Loan Originator Best in Client Satisfaction
0 votes Thank Flag Link Thu Aug 15, 2013
I think most of you are missing the question. They are asking how many days do they have to move in after closing if they get a 20% down conventional owner-occupied loan. Perhaps they need to evict a tenant after closing, or something else will delay their moving in. But on owner-occupied loans, there is a requirement that the property eventually be owner-occupied.

I recently asked a lender this very question, but don't remember the answer. I would ask though why tmscarpa doesn't just ask their lender this question?
0 votes Thank Flag Link Wed Aug 14, 2013
YES! Thanks and you are correct in my question.

As I mentioned in one reply (not sure if you can see that) I don't yet have a lender. I am in the process of identifying one but would like to research both how fast I have to occupy and for how long I have to occupy to satisfy the requirements of an "owner occupied multi-family 20% down conventional" mortgage? I have asked some lenders these questions and all I got was a "well it will depend on the terms" which does me no good as I have no terms. If this is too difficult of a question for this forum perhaps I need to identify an additional resource. Thanks
Flag Wed Aug 14, 2013
Type of........? Loan.....contract......lease.......?
0 votes Thank Flag Link Wed Aug 14, 2013
Without more information it's impossible to respond. For questions about lending rules for an owner-occupied mortgage you should contact the lender, or read the fine print of your loan documents.
0 votes Thank Flag Link Wed Aug 14, 2013
FHA rules are evolving, so best to address your question to a lender about future loans or length of occupancy before you can obtain a new FHA loan. Regarding occupancy post-closing, it varies. With conventional mortgages I've heard 30-days and 60-days, but you should check with the lender to find out what is required to be in compliance with the loan terms. Since you are away, it might be something as simple as transferring utilities to your name, and providing a notice-to-vacate to the tenant. Again, the rules vary, so best to verify with the lender, directly. Good luck.
Flag Wed Aug 14, 2013
I agree however was limited by the number of characters allowed in my original question for some reason. I am told there is a 60 day period by which to occupy and I am wondering if there are instances where exceptions are made to extend that period? I am away on a contract at the moment, do not need the place immediately and would really like to give the tenant as much time as possible.

I realize that my lender will be able to answer these questions however as I do not have one at the moment I am looking elsewhere to answer my questions.

I am also wondering how long I may have to reside there before taking out an FHA on another property should I choose to upgrade in the future?

Thanks
Flag Wed Aug 14, 2013
That depends on many facts that are not given in the Question. When is the closing? Have you stated that the property is to be a primary residence? Your agent should have the answers to these... Do you have one? If not, get a professional. There are sooo many ways for things to go wrong.
0 votes Thank Flag Link Wed Aug 14, 2013
Thanks, and agreed but unfortunately the question block only allowed me so many characters! Closing is mid-Sept and it will be my primary residence. There are tenants in there now and while I am working on a job out of state I would like to allow them to live there as long as possible however I am reading that I may need to occupy within 60 days? I am working on finalizing with a lender now but want to make sure I understand as much as possible beforehand. Thanks!
Flag Wed Aug 14, 2013
There shouldn't be any. The only concern you might have with timing would be if there is a tenet on the property.
0 votes Thank Flag Link Wed Aug 14, 2013
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