Homepath loans owner occupy rules

Asked by Jason Daniels, 48094 Tue Mar 30, 2010

If I get a homepath loan how long do I have to live in the home before I can rent it out? It doenst list this on there website but I was told that if I buy it to live in its 3% down but if I buy to rent its 10% down. I would rather do 3% down.

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Andrew Marti…, Mortgage Broker Or Lender, Orangevale, CA
Fri Nov 19, 2010

This is a grey area and as long as the true intention is to occupy the property as a primary residence when you purchase the property and in fact occupy the property after the loan records there isn’t a set time frame. I doubt any lender will call a loan due because of a change in occupancy. I never heard of a monitoring of the type of occupancy after a loan closes by any lender either. As long as the mortgage payments are current you should be fine renting the property out. You will however sign disclosures stating you intend to occupy the property as a primary residence but there isn’t anything that states duration of time. If the intention is to state the property is occupied to obtain a lower mortgage rate and you never move in you did commit mortgage fraud. I would be surprised if you saw anything in writing that states you have to be in the property for a specific duration before you can rent it out.
Web Reference:  http://www.ccflender.com
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T.J. Malkasi…, Agent, Grand Rapids, MI
Wed Mar 31, 2010

I am a Homepath Financing approved lender here in Michigan. I would love to assist you with your purchase. I just emailed my underwriting department to find out the specifics for you on this. Please shoot me an email at TJ@TopFliteFinancial.com so that we can coorespond easier. Once I hear back from underwriting I will email you your answer as well as current interest rate and cost information. I will need to get a bit more information from you though in order to be accurate.

TJ Malkasian
Mortgage Banker

Top Flite Financial, Inc.
4149 Embassy Dr.
Grand Rapids, MI 49546

P: (877) FHA-QUOTE
P: (616) 433.7066
F: (616) 829.6002
E-mail: TJ@TopFliteFinancial.com
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