Profile picture for plarusa

Non owner occupied interest rate

The rates are higher for non owner occupied vs primary residence. My question is, how does the bank verifies primary home ownership. What would prevent me from claiming primary residency for a vacation home just to get a better rate?
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November 25 2007 - US
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If the non owner occupied home is more than a certain distance away (say 74miles) then its considered a vacation home , and you can get the same rate as the home you live in.

If it is rented, or is less than a certain distance away, its considered an investment property.
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November 25 2007
Underwriters also have to use some common sense. Being in Massachusetts and having vacation homes closer to none vacation areas. Cape code and boston are only a few miles apart and a large number of cape homes are vacation homes.

Underwriters have to use common sense to be considered a 2nd home/vacation home it would need to be in an area that having a vacation home is desireable, close to the beach or ski areas, lakes etc.

If you are trying to claim a multi unit as a vacation home it will be a tough sell. If you are trying to claim a 2nd home as a primary because it is not in a vacation area and you want to keep your primary it will also be a tough sell. You would need to explain why you are moving. Is the new house larger or smaller is it in a more or less desireable neighborhood, is the house itself more desireable.

What should prevent someone from claiming it's a primary residence and it is not is somthing called Fraud.
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November 25 2007
Plarusa

First, Second homes typically must be in resort or vacation areas.

Second, as above the underwriters will scrutinize- Especially in this Financial Climate. The banks do on occasion do Occupance checks, and Can Call the Loan Due and Payable if they Deem Fraud.

Becareful.

Regards
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November 25 2007
Yes.. many states passed laws that you can go to jail for any misleading info that can be consired mortgage fraud because the current situation...
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November 25 2007
Profile picture for Dimah
If your Loan to value is less than 50% I can get you owner occupied rate.
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November 29 2007
I can get you 5.625% on a 30 year fixed with no middleman fees.

Direct lender.
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November 29 2007
Hey, you stole my line.
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November 29 2007
 
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