valstpatrick
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Yes. But you can not BUY an investment home as a primary. The lender can do what is called an occupancy inspection and if they determine you are NOT living in a primary residence then you will need to refinance that home into a non-owner occupied property.
Hope this helps |
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CJKatl
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Be careful...
Many mortgages in the past few years included specific wording, which borrowers signed at closing, protecting lenders against investors who misrepresented the intended occupancy status for the collateral. The wording usually required borrowers to occupy the property as a primary residence within the next three or six months and remain in the property for at least one, two, or three years. Otherwise, the loan could be accelerated, which means the principle becomes due.
Look through your paperwork from the closing for anything that says "Acceleration Clause" and read it carefully.
If you don't have one, so long as you intended to live in the home when you got the loan, you should be okay. |
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PSF11
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I can speak for my case. You don't want to change your status. Your mortgage would increase as an investment. In Maryland (where I did it) you are allowed to leave your primary residence *once* and convert it to an investment property without any change to your mortgage.
*************EDIT*********************
Clarification-- when I said "leave once" I meant you can only have this arrangement with one home. If you do it again with your second home, you would need to convert your mortgage to a real estate mortgage with a higher rate. |
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escape
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If you purchased your first home FHA insured you can not purchase another home FHA. You can purchase your next home Conventional with 3-10% down and your primary home will be the one you can get the 2 tax exemption's from. Many people do this and end up renting out their home instead of selling it. Talk to your mortgage company, if you stay with the same company it will be easier to close on your new home & they may give you some closing discounts. I know my mortage company did. Good luck! |
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Genki
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YES.
Your loan papers on your current home probably require you to live in the property as your primary residence for at least 12 months after purchase (read your loan papers). After that, you are free to do as you like. |
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Weimaraner Mom
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Yes, but that won't change the status of your mortgage. The only thing that will happen is which house you can claim the property taxes on at the end of the year. You will only be able to claim one house as your residence and get a tax break. |
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earth angel
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sure, why not? You have to vacate the other house though first. you cannot tell the occupants that you will occupy their residence just because you own it. you have to wait for their lease to finish and do not renew it. |
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Etta P
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Yes, you can. Only exceptions would be under some guidelines of VA loan quaranty and FHA insured loans which may have some restrictions. But, generally the answer is yes. |
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liveinaustin
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Moving from your home and treating it as an investment property doesn't change your mortgage in any way. Obviously, your note did require you to be the owner / occupant, but the lender just wants their payment on time and probably won't give a hoot if you lease the home out. This is extremely common.
You will need to change your insurance to non-owner occupied though...otherwise a claim could be denied. |
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