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Permanent vs Temporary Residence on 1st Property

I am looking to purchase my first home. I was only approved for $205k and it's really tough to find a home for that cost. There are some manufactured homes here in Newport that are really nice - but I prefer a home that is built into the ground as I have read so much criticism about manufactured homes. I found a charming 3 br home, 2,063 sqft, needs a little TLC for only $120k in the state I was born in, Ohio, Miamitown, which is a new city for me. I am worried if I move there while in escrow and don't like it and move back to Cali, I would be technically lying on my application as this will no longer be my primary residence and I would have to rent the home out or resale. Can someone give advise here - I don't want to commit perjury but I want to purchase this home and I am getting ready to bit $122k as it was already reduced by $10k in the last 49 days. by smcnabb24 from Newport Beach, California. Nov 12th 2018 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

More info needed, but in general. If you are leaving the area which you are employed at.. that could create a concern for the underwriter.. are you relocating for work? Are you seeking new employment in OH? Do you work from home and it really dosent matter where you work? The underwriter will want to know, and will ask for a letter from your employer to verify.. As far as your primary question.. Lenders have to go by intent.. if your intent is to relocate, and live in the home, but after some time, you decide to move back to CA and rent/sell the home.. then it might not be a problem. Also, you are correct in regards to manufactured homes.. it's best to stay away form them.. First, all confirming guidelines only require you to live in the property for 1 year.. after that, you can do what you wish.. but on the other end of the spectrum, if you buy it.. never relocate or move in, and put it back on the market 90 days later for a handsome profit, then the lender might claim you bought this as a fix and flip/investment and did not properly disclose that on the original application. I recently helped a client buy a home from someone who recently bought, but days after closing, his employer relocated him.. he had to put the home right back on the market.. since he was selling it for about what he paid for it.. and it was a circumstance that was not foreseen.. it wasn't a problem for him as a seller, but it was a problem for the buyers.. the loan program they were on required that the property be "Seasoned" for at least 90 days before a resale.. In all reality, if the payments are made on time, it's almost never an issue, but that being said, it's still illegal to say you will move in and then never do it.. (shy of unforeseen circumstances).. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893

Nov 13th 2018
Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,409 contributions

Whenever you relocate, the number 1 question on our mind is your job and income. No lender will let you get a loan in another state knowing you will quit the existing job. Do you have a new job lined up? Are you keeping the same job because you can work remotely anywhere? Next, when buying a home "owner occupied" you are stating you are going to live in the house for at least one year. The rule is based on "intent". If you lied about living there, and you knew you never were going to live there, or knew you were going to live there less than 1-year, that would be mortgage fraud. If on the other hand for example, you bought and move there, and then 6 months later you got fired from your new job, then took a job back in California, turning the Ohio house into a rental - that would be fine. Because there was no intent to defraud at the time of application. For loans in MN, Wi, and SD, visit me at or (651) 552-3681. NMLS 274132

Nov 15th 2018
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