If I purchase a home in a partnership and only one partner moves into the home can we still get an owner occupied loan?

Asked by Diver4kal, Rohnert Park, CA Wed Oct 5, 2011

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Rudi Hofmann’s answer
Rudi Hofmann, Mortgage Broker Or Lender, El Segundo, CA
Fri Oct 7, 2011
Chances are the lender won't allow the loan to be in a partnership. You can have your title in a partnership after the loan funds. If only one person is going to occupy and you need the income from the other to qualify that person would be an non-occupying co-borrower.

Happy funding, Rudi
Web Reference:  http://www.umboc.com
0 votes
Jeff Marr, Mortgage Broker Or Lender, Roseville, CA
Sun Feb 10, 2013
Diver4kal - most conventional lenders won't lend to a partnership, we lend to individuals....

However, after the loan process is complete, you can transfer ownership into your partnership...

If you're doing an FHA loan, then only one person needs to be able to occupy the home, the other applicants will be considered non-occupying coborrowers...

hopefully this helps and good luck!

best, Jeff Marr
0 votes
George Raymo…, Mortgage Broker Or Lender, Fort Worth, TX
Thu Oct 6, 2011
Be careful, there are specific loan programs that require that all borrowers occupy the property. FHA has the most lenient stance on the subject, as we see non-occupying borrowers everyday. But there are other conventional programs that do not allow this. You don't want to get yourself in any trouble, make sure to consult with a mortgage professional so you avoid any issues later on.

Best of Luck!
0 votes
Daniel Choi, Agent, Los Angeles, CA
Wed Oct 5, 2011
Yes. I see no problem why you should not receive the loan as owner occupied. For your reference, I found this article on the site that I read often. Hope it is of your interest.

http://www.biggerpockets.com/renewsblog/2006/11/16/real-esta…

Best,

Daniel Choi
0 votes
John Arendsen, Agent, Leucadia, CA
Wed Oct 5, 2011
For sure. I'm doing it right now with one of my children.
0 votes
Laura Feghali, Agent, Stamford, CT
Wed Oct 5, 2011
Hello Diver4kal,
Yes, only one partner residing in the home would be considered as "owner occupied".

Good luck!

Laura Feghali
Prudential Connecticut Realty
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