The Entrepreneur Forum | Financial Freedom | Starting a Business | Motivation | Money | Success

Welcome to the only entrepreneur forum dedicated to building life-changing wealth.

Build a Fastlane business. Earn real financial freedom. Join free.

Join over 80,000 entrepreneurs who have rejected the paradigm of mediocrity and said "NO!" to underpaid jobs, ascetic frugality, and suffocating savings rituals— learn how to build a Fastlane business that pays both freedom and lifestyle affluence.

Free registration at the forum removes this block.

Owner occupied and LLC questions

J P D

New Contributor
User Power
Value/Post Ratio
10%
Nov 6, 2007
59
6
Chicago, Il
Hey guys,

I have two quick questions.

I have owner occupied financing on my first 2unit property. In my lending agreement it states that I will make this property my primary residence for at least one year from the move in date. I was just speaking with a lender about another possible deal and he claims that I only have to reside in the property for 120 days to satisfy the owner occupied status of my loan.

Does this sound right to anyone? Even if it is do-able, will this be looked upon negatively by lenders in the future when I apply for an owner occupied loan?

My second question is regarding LLC's. Even with near perfect credit, no other debt or monthly expense besides my mtg, I am told it is next to impossible for me to qualify for any kind of loan on an investment property. This is due to my debt/income ratio being too high (I had to switch jobs and took a pretty sizable pay cut). If I put my current two unit under an LLC would that then free up my personal debt/income with which to qualify for an investment loan?
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

hakrjak

Bronze Contributor
Read Fastlane!
User Power
Value/Post Ratio
7%
Sep 15, 2007
1,887
127
Colorado Springs
I don't think they can enforce that. When you buy the property you are agreeing that you intend to occupy it, but things can change -- life emergencies, births, deaths, etc... And I have never heard of a bank finding out or nitpicking how soon someone moved out of an owner occupied property.

In addition, none of my loan docs say anything about a specific # of days... They all just say "I intend to occupy" the property, yada yada yada... Your deal may be slightly different than some deals I've done, but I think what I said above still holds true... How they gonna attack you for changing your mind? :)

Cheers,

- Hakrjak
 

Runum

Legendary Contributor
EPIC CONTRIBUTOR
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
User Power
Value/Post Ratio
101%
Aug 8, 2007
6,221
6,298
DFW, Texas
They may not do anything for you not living up to your end of the deal. However, they also may do something if you violate your end of a signed agreement. They could bring the contract to be completely due(doubtful) or they might just not be able to deal with you on other deals in the future. I know things come up and life happens. That is different than deciding to not abide by your word. Maybe I'm too old school about this, I just believe you reap what you sow. Good luck.:cheers:
 

I85

Contributor
User Power
Value/Post Ratio
12%
Mar 22, 2008
171
20
Iowa
In addition, none of my loan docs say anything about a specific # of days... They all just say "I intend to occupy" the property, yada yada yada... Your deal may be slightly different than some deals I've done, but I think what I said above still holds true... How they gonna attack you for changing your mind? :)
I would think twice about following this advice, unless you don't mind the possibility of prison. I could be wrong, but it sounds like mortgage fraud to me.

Hey guys,

I have two quick questions.

I have owner occupied financing on my first 2unit property. In my lending agreement it states that I will make this property my primary residence for at least one year from the move in date. I was just speaking with a lender about another possible deal and he claims that I only have to reside in the property for 120 days to satisfy the owner occupied status of my loan.
Who did you speak to? Did you ask why it says one year and if they could change the writing to say 120 days? I've quickly learned that many people will say ANYTHING to get you to sign on the dotted line....and the writing on that paper is the only thing that will matter.
 

Corrado79

New Contributor
User Power
Value/Post Ratio
5%
Sep 24, 2007
82
4
Santa Monica, CA
Please, please do not get owner-occupied financing if that is not your intent. The potential problems are not worth it. Your best bet is to operate on the straight and narrow.
 

Post New Topic

Please SEARCH before posting.
Please select the BEST category.

Post new topic

Guest post submissions offered HERE.

Latest Posts

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Ideas needing execution, more!

Join Fastlane Insiders.

Top