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Investment loan for owner occupied property

Hi all, I'm in a transition period having just finished grad school, and I am now financially able to purchase a condo. I am so tired of renting. However, I may be moving to another city should some job opportunities come through. If I was to purchase a condo now and relocate in 8-11 months, I would end up renting the new condo. With such good rates these days, should I purchase with the intent of occupying and obtain an investment property loan? Is there any harm in doing that? Seems like the best way to not violate the intent clause of owner occupancy.
  • February 04 2012 - US
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Answers (4)

discuss with your mortgage broker. He should be able to give you multiple options.
  • February 04 2012
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Further thoughts that address the questions about an investment property mortgage in this context would be most helpful. 
  • February 04 2012
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Hi Behavan,

I would suggest waiting until you relocate.  8-11 months isn't that far away. I don't see interest rates going up until the Presidential election is over.  Republicans or Democrats don't want to rock the boat, and the economy isn't strong enough to raise interest rates.  I do think there is such an amazing window of opportunity for buyers right now.  Not only are interest rates at the lowest they have been in over 40 years, home prices are down so it is a great time to make a good investment.  But owning and managing a property from afar can be difficult.  Yes, you can hire a property manager to take care of the property for you, but I personally like to manage my own investments.  Patience has never been one of my virtues, but I must admit I've gotten better at it as I've grown older.  Be patient and the time will come where you can be a home owner and not a renter. Keep saving money for your down payment and don't make any big purchases like a car.  This will help you when you qualify for the loan.

Good Luck!

Phyllis Nelson
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  • February 04 2012
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This is a good question for a mortgage broker. Donna is very good at recommending the right time to buy a property. Not saying it is not a very good time to purchase a home or condo but, you may not want to lock your self into a loan knowing you will be moving in 8 months. It is good to know if you can afford owning a property and renting one at the same time. You may not want to have such a monthly payment in case your renter backs out and you cannot afford both renting and paying a mortgage just coming out of school.

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All the best to you.
Bernard
  • February 04 2012
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