Moving out of state for school, don't want to purchase as "investment property"...

Asked by tigercadet, Bloomington, IL Sun Apr 14, 2013

I'm moving to the RDU area to start a graduate program in August. I've travelled to the area, met with a realtor, and want to place an offer on a place. However, the lender tells me that because I will not be receiving income in NC until September, I will have to get a loan to purchase an "investment property."

I am a first time home buyer, and this will be my primary (and only) residence when I move. I don't want to pay the excess interest (and potential excess property tax) for the place...

I know people move from out of state all the time? Is this my only option, purchasing as an "investment property?"

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Irina Bennett’s answer
Irina Bennett, Agent, Chapel Hill, NC
Sun Apr 28, 2013
Here is a great news for you:
If you have an Job offer letter, and are putting down 20%, you don’t have to be on the job to actually buy and close the house. You do have to be on your job and provide paystubs before your first payment is due though… and that is always within two months of when you close. You can also do it w/ a cosigner. You will need some type of job offer though.

Amy Bonis Certified Mortgage Planner
“Simply the best in home lending!”
(919) 414- 4430
0 votes
My NC Homes…, Agent, Chapel Hill, NC
Mon Apr 15, 2013
No, you're just speaking with the wrong lender. I would suggest you contact Justin Burris at Movement Mortgage 919-535-4760 or Todd Barbour at River Community Bank - 919-459-1311

This is why it pays to work with experienced Realtors, we have better resources.

By the way property tax rates don't change regardless of your loan type you'll pay the same amount. What changes is the interest rate and qualifications for an investment property versus primary.

This is a great area, not sure whether you're coming to Duke, UNC, NCState or NCCU, but all of them are great schools. Congratulations.
0 votes
Jo Barnes, Agent, RALEIGH, NC
Mon Apr 15, 2013
This is the second time I have tried to answer this question. I sure hope you are there TigerCadet, because "they saw you coming " my dear. You need a NEW LENDER !! Please contact me tonight if possible. And if you are too shy, then please have a family member call me

Better yet, text or email me that way you will get an immediate response.
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Melissa Albe…, Agent, Wake Forest, NC
Mon Apr 15, 2013
Hello Tiger,

I agree with Vivan. Talk with a few more lenders. Good luck.

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Vivian Olkin, Agent, Carrboro, NC
Sun Apr 14, 2013
Hi Tiger,

This is so interesting because a buyer I'm working with is facing the very same thing. It is nuts, and shouldn't make a difference if you are an owner occupant. The rules for lending change all the time, so it is worth calling some other lenders/banks to find out about the rules. Your note is very discouraging if it turns out to be true. I cannot believe that all the grad students and medical residents will face investment rates.

Good luck, would love to know what you find out.

Vivian Olkin, aka CrazyViv
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