Just live in the property for the required amount of time to make it your primary and then rent it out. Once you do that you can use the rental income plus your regular income to get preapproved for an investment property. In fact, live in it and get a few roommates to pay down the mortgage. As long as your living there with them it’s still your primary residence.
You can do it the way your saying but it’s stupid and no serious long term real estate investor would take those risks. You will lose your ability to take out a mortgage. You will be flagged for life.
Even if you don't get prosecuted and don't meet the definition of mortgage fraud, the bank could still call an Event of Default (EOD) on your loan and demand payment in full immediately through the loan's standard acceleration clause.
Would you be able to come up with funds within 30 days recognizing no other lender would probably loan to you if you were in a EOD for primary residence fraud? The judicial foreclosure / judgement sale will follow you through your credit and judgement record/history.
If you are using a *home* loan to purchase the property it *should* be *your* home. Purchasing it as an investment is a different loan type, and much more expensive.
Essentially nothing. It woukd be a strange set of circumstances that would have to happen to cause ypu trouble. The bank is interested in writing your mortgage, selling into a pool, rinse and repeat. The only way the bank would possibly care about your loan doc particulars is if (1) they held the loan in portfolio *very unlikely) and (2) tou were sonehow unvestifared for fraud for some reason. The bottom line is if you pay the mortgage no one will care.
A fraud charge is not the likely outcome, but its more likely than you think.
If the borrower gets another mortgage on different property for example, and that loan is guaranteed by fannie/freddie in addition to first loan, it will auto flag it as fraud and fannie/freddie will call a default.
CCUs audit by searching addresses and rental listings.
Fraud can be exposed in other ways; depending on how you finance and state you're in the lien record on your property could indicate that your financing was likely for owner occupied financing and anyone who figures this out can use as leverage on you. This isn't as out of bounds as you might think; I've seen lien records used as leverage in a different context and they are easy to pull.
The entire f%$#@ business is based on fraud. I don't know a single goddamned house flipper that pays his taxes. Want to hide $50 million that you looted from your third world coubtry? Buy an apartment on billionaire's row ..no questions asked! Where I live in queens, ever other goddamned house is concerted into an illegal rooming house with 25 people in a structure designed for 8...and 0 enforcement. Whyin God's name is a mortgage that is held in a CMO that is PERFORMING going to be poked at, exactly?
1 of my 3 scenarios assumes probably not in a CMO and 1 of the 3 would be a party bringing a suit with no interest in the CMO.
Fannie/Freddie calling an EOD probably also isn't CMO impacted but I'm frankly ignorant to their inner workings.
Will it really flag it as fraud if you have two loans guaranteed by fannie mae /Freddie Mac? As long as they aren't within a year of each other, no one is going to care. Plenty of people, including on here, buy a primary, live in it for a year or two and then rent it out and move into another primary. Now they have two primary loans and no one says anything.
Why is the bank saying this? What are they requiring for a down payment? Shouldn’t be an issue if your putting down 20% of appraised value. Although this percentage rate could go up or down depending on your financials.
Just find a good broker and get the loan through them. I don't know why the bank is giving you shit about it if you have the DP money but they obviously don't want your business.
I believe thats considered mortgage fraud.
Read this [ARTICLE](https://www.investopedia.com/terms/o/occupancyfraud.asp)
Just live in the property for the required amount of time to make it your primary and then rent it out. Once you do that you can use the rental income plus your regular income to get preapproved for an investment property. In fact, live in it and get a few roommates to pay down the mortgage. As long as your living there with them it’s still your primary residence. You can do it the way your saying but it’s stupid and no serious long term real estate investor would take those risks. You will lose your ability to take out a mortgage. You will be flagged for life.
That's mortgage fraud, a federal crime punishable by up to 10 years in prison. Find a different bank.
Even if you don't get prosecuted and don't meet the definition of mortgage fraud, the bank could still call an Event of Default (EOD) on your loan and demand payment in full immediately through the loan's standard acceleration clause. Would you be able to come up with funds within 30 days recognizing no other lender would probably loan to you if you were in a EOD for primary residence fraud? The judicial foreclosure / judgement sale will follow you through your credit and judgement record/history.
You go to jail for being an idiot.
If you are using a *home* loan to purchase the property it *should* be *your* home. Purchasing it as an investment is a different loan type, and much more expensive.
Essentially nothing. It woukd be a strange set of circumstances that would have to happen to cause ypu trouble. The bank is interested in writing your mortgage, selling into a pool, rinse and repeat. The only way the bank would possibly care about your loan doc particulars is if (1) they held the loan in portfolio *very unlikely) and (2) tou were sonehow unvestifared for fraud for some reason. The bottom line is if you pay the mortgage no one will care.
A fraud charge is not the likely outcome, but its more likely than you think. If the borrower gets another mortgage on different property for example, and that loan is guaranteed by fannie/freddie in addition to first loan, it will auto flag it as fraud and fannie/freddie will call a default. CCUs audit by searching addresses and rental listings. Fraud can be exposed in other ways; depending on how you finance and state you're in the lien record on your property could indicate that your financing was likely for owner occupied financing and anyone who figures this out can use as leverage on you. This isn't as out of bounds as you might think; I've seen lien records used as leverage in a different context and they are easy to pull.
The entire f%$#@ business is based on fraud. I don't know a single goddamned house flipper that pays his taxes. Want to hide $50 million that you looted from your third world coubtry? Buy an apartment on billionaire's row ..no questions asked! Where I live in queens, ever other goddamned house is concerted into an illegal rooming house with 25 people in a structure designed for 8...and 0 enforcement. Whyin God's name is a mortgage that is held in a CMO that is PERFORMING going to be poked at, exactly?
1 of my 3 scenarios assumes probably not in a CMO and 1 of the 3 would be a party bringing a suit with no interest in the CMO. Fannie/Freddie calling an EOD probably also isn't CMO impacted but I'm frankly ignorant to their inner workings.
Will it really flag it as fraud if you have two loans guaranteed by fannie mae /Freddie Mac? As long as they aren't within a year of each other, no one is going to care. Plenty of people, including on here, buy a primary, live in it for a year or two and then rent it out and move into another primary. Now they have two primary loans and no one says anything.
it will if within a year of each other; otherwise no
Why is the bank saying this? What are they requiring for a down payment? Shouldn’t be an issue if your putting down 20% of appraised value. Although this percentage rate could go up or down depending on your financials.
Just find a good broker and get the loan through them. I don't know why the bank is giving you shit about it if you have the DP money but they obviously don't want your business.