Best of Luck,
Century 21 Tenace
If you go to purchase another home in 12 months, they will pull the note on the first and inspect it. You may be forced to pay investor rates on the second home despite you actually moving into this one.
I would recommend you try your best and follow you signatures by "intending" to move into the unit. If it doesn't work out, things like this happen, but keep the electric and water bill in your name for a year. Just pass on the costs to the tenants. You should be fine.
The Fannie mae Police don't look to kindly on this type of Fraud.
Is there a Fannie Mae Police? Well not really but than again yes.
Lets say you bought the property and lets say you bout it as an investor....
Lets say you rent it out to people who the neighbors love to hate. You know, "Renters."
Well every neighborhood has 3 Realtors and one of them cares a little too much about their neighborhood. They know about each property that sells in the neighborhood. They watch their home price value go up and down. Rentals arent the best for home values by the way and many Realtors know this and are not happy when see rental signs in their bedroom community. They also know when a house GOVERNMENT such as HUD FANNIE ECT went off the market in say like 9 days they expect a new home owner, not a renter.
They may even introduce them self to the neighbor. When they figure out it is a rental or the name is not right or the renter moves out in 6 months, They may call fannie mae to get rid of the problem renter or cause havoc for the landlord who cheated the system. I heard about one in a neighborhood and now the house is vacant. I do understand they have fines in place. But hey you are an investor with cash you can afford it right?
You may want to consider cancelling the contract or enjoy your move into your new home. The reason the government has these programs is to allow homeowner occupiers to stabilize the housing industry. after 15 days on the market USUALLY you as an investor can buy it.
Harold Sharpe - Broker
So Cal Homes
California Department of Real Estate Broker License # 01312992
"This is to certify that consistent with the representation made by me in the Real Estate Purchase Addendum, Section 4, Use of Property, I will occupy, establish and use the above-referenced property as my primary residence within 60 days after the Closing and will continue to occupy the property as my primary residence for at least one year after the date of occupancy, unless extenuating circumstances arise which are beyond my control. If the property is a multi-unit property, I may rent units other than the unit that I occupy as my primary residence. Furthermore, I fully understand that Fannie Mae is relying upon my representation of being an owner occupant of the property, and that the sale of the property to me by Fannie Mae is conditioned upon this representation.
In the event that I do not occupy the property as my primary residence in accordance with the above certification, I shall pay Ten Thousand Dollars ($10,000) to Seller as liquidated damages, which amount shall be in addition to Sellerâ€™s right to retain any earnest money deposit and any other funds then paid by the Purchaser as liquidated damages pursuant to Section 19 of the Real Estate Purchase Addendum and any other remedy available to Seller at law or equity. Additionally, I agree to pay Sellerâ€™s reasonable attorney fees and costs incurred by Seller in enforcing its rights hereunder."
So I strongly suggest that you comply with the terms of the agreement.
However if Fannie Mae explicitly requires you to own it as a primary residence regardless if it is a cash purchase then they usually require 12 months of owner occupancy. After that you should be able to rent it. Check your deed.