Home Buying in 94086>Question Details

Soldier Nurse, Home Buyer in 94086

my lender said that if I purchase a home while deployed it is considered INCOME PROPERTY since I wont occupy it until I return in 3 months.

Asked by Soldier Nurse, 94086 Tue Oct 11, 2011

No one else will occupy the home. My mom has Power of Attorney and is handling the transaction. The lender says because Im out of the country I have to put down a minimum of 20%
Shouldnt I be treated the same as if I was in my home town in California?

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When you are using any type of financing, and will be buying the home as owner occupied, then you will need to occupy the home within a certain amount of time. FHA & conforming (Fannie Mae/Freddie Mac) all have standard language that you must occupy the home within 60 days of closing.

VA financing (since you are "deployed" and are "Solider Nurse" I figure you may be trying to use a VA mortgage) also requires the veteran to occupy the property within a reasonable time, which VA defines as 60 days. More than 60 days, up to 12 months, can be considered reasonable if you can certify you will occupy the property at a specific date after the loan closing and there is a particular future event that will make that possible (such as you coming home from deployment). Now you do not need to maintain a physical presence at the property on a daily basis, however occupancy “as the veteran’s home” implies that the home is located within reasonable proximity of your employment. If your employment requires your absence from home a substantial amount of time, then you must have a history of continuous residence in the community and there must be no indication that you have established, intends to establish, or may be required to establish, a principal residence elsewhere. Additionally occupancy by the veteran's spouse (but no other family member) can also satisfy the occupancy requirement.

If you are using a VA loan, and feel you meet the above exception that you will be able to occupy the home at a specific date & there is a particular event that'll make that happen, then you may be able to get VA financing. I've helped many veterans buy a home here in the U.S. using VA financing while overseas, if you need help let me know and I'd be happy to offer a 2nd opinion on your situation.
3 votes Thank Flag Link Tue Oct 11, 2011
Hi Soldier Nurse:

Start by pursuing a VA Loan and structure your contract to close 45 days out, with a note
from your CO if necessary that you will be returning within 45 days.

http://www.trulia.com/blog/perry_mistry/2011/10/silicon_vall…

Good luck.
Perry
Web Reference: http://www.ruthandperry.com
1 vote Thank Flag Link Sat Oct 15, 2011
Like that answer Ruth and Perry. Sounds like you've been there and done that.w
0 votes Thank Flag Link Sat Oct 15, 2011
I'd find a more user friendly lender who is willing to play ball with you with respect to timing the closing of the loan to the time you return so you can satisfy their requirementss. You would just have to be sure this cous also be negotiated with the escrow.

If I were the seller and knew that the person wishing to purchase my home had been away fighting form my freedom I'd make the deal happen. Anyone should be proud to be able to help a returning soldier garner a home for themselves. Good luck and keep us posted. This is a very interesting topic and should be shared with other members of our armed forces.
0 votes Thank Flag Link Thu Oct 13, 2011
thank you for your service ! The rules for this are seriously out of step in my opinion. I bet Dodd/ Frank forgot to fix that. I hope you have a record of living in the area where you are considdering buying your home. That itself will help you find a work around.

My question is this: Is there a occupied house monitor/czar that would actually knock at the door? (poor sarcasm}

If so, that agency needs to be cut from the budget. really.

Michael
0 votes Thank Flag Link Wed Oct 12, 2011
Shane,
Very well answered! Appreciate your Lender insight!
Nina
0 votes Thank Flag Link Tue Oct 11, 2011
Dear Soldier Nurse,
Firstly, thank you sincerely for serving our country! I am very appreciative and proud of you!

Who is your Realtor?? Shouldnt they be handling this with your Lender! As far as I know, if you are Buying a home as your Personal Property and intend to live in it, and NOT Rent it out, then this is your "primary residence!" NOT an Income property, as you will Not be earning any rent off it......correct? Yes, you should be treated like you were here as you intend to live in your home! 20% would be good so you dont have to pay PMI(Mortgage Insurance) but not a compulsion if you cant! Please get another Opinion from a different Lender....
Are you already in contract on a property?? if so, you need to move fast if in Contingency days!
If you dont have a Realtor,pls do get in touch with me, will take exceptional care of you!
Be Well and Safe, Regards,
Nina Daruwalla
Realtor, Coldwell Banker, Cupertino
DRE#01712223
0 votes Thank Flag Link Tue Oct 11, 2011
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