Home Buying in Chicago>Question Details

Franklin, Home Buyer in Chicago, IL

203k loans -- what is owner occupancy and what are the restrictions around occupancy?

Asked by Franklin, Chicago, IL Mon Apr 20, 2009

When purchasing and financing a property using a 203k loan, what exactly does "owner occupied" mean? Is there a formal explanation of what that is and is not?

Is there a requirement on how long the owner has to live in the property before being able to move into another property (keeping the first property)?

Is there a restriction on reselling the property within a certain time limit (i.e. can you buy, renovate, and sell within a few months after the renovation)?

Thanks!

Franklin

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Answers

5
Franklin:

Owner occupied means you live in and occupy the home. You would live there 7 days a week.

Kurt Clements
1 vote Thank Flag Link Mon Apr 20, 2009
Franklin:

Owner occupied means the owner lives in the property. That's all. There is no restriction on how long the owner must live in the property before moving into a different one. If you have any other questions, please feel free to contact me directly at kclements@gsf-mortgage.com.

Kurt Clements
Senior Vice President
GSF Mortgage
3933 75th St
Aurora, IL 60504

http://www.gsfgovernmentloans.com
1 vote Thank Flag Link Mon Apr 20, 2009
Thanks for the answers so far... On my first question, I guess I was looking for clarification on what qualifies as "owner occupied".... For example, I currently rent and some of the areas I'm looking at buying in are farther from work than where I currently live. My current rent is very low so one option I'm considering is keeping the rental unit I'm currently in (or at least a room in the unit) for weeknights so my commute to work isn't as much of a hassle. So I'm looking for what exactly defines "owner occupied" ... is it living in a place X number of nights a week? Is it simply changing your legal address?

Thanks again!
0 votes Thank Flag Link Mon Apr 20, 2009
There are some low down payment portfolio loan options out there for construction financing. Anytime you're not going to owner occupy the property, the risk for the lender is higher and they require a larger down-payment.

Best of Luck.
0 votes Thank Flag Link Mon Apr 20, 2009
Owner occupied means that you the owner occupy the building. As far as I know there are no restrictions as far as renovating and reselling. If you need financing for 203K I highly recommend Jaime Franz at A&N Mortgage. He knows all of the restrictions and rules about 203K.

He gives seminars on it as well.

He can be reached at jfranz@aandnmortgage.com
• 773.305.LOAN (5626) ex. 120

If you need help purchasing contact me

Phil Burnstine
Thornton Properties
phil@thorntonproperties.net
773-255-1506
0 votes Thank Flag Link Mon Apr 20, 2009
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