[Edward Groody]

Edward Groody

I plan to rent my current home and purchase/live in a fixer upper home. After 1-2 months of living and fixing that home, I would like to purchase a new home and stay. Is it ethical to get an owner mortgage w/lower interest rates for both home purchases?

[Anonymous]

Anonymous

Hi Edward

You can only get an owner occupant loan for the home you will be living in.

It is actually against the law to say you are an owner occupant when your plan is to rent the house. It’s called loan fraud and you can serve jail time and pay a big fine for knowingly buying a house with an owner occupant loan when you have no plans of moving in.

Now, If you actually do move in to the first fixer house first, get it fixed up, then later turn it in to a rental, that’s ok.
But you can’t buy it with an owner occupant loan and never move in.

OR….

You can forget about bank financing for EITHER ONe of the houses. Buy the fixer house with seller financing and buy the house you plan to move in to with seller financing and you don’t need to worry about getting bank financing and playing by their rules.

Jack Miller is a STRONG believer in NEVER – EVER – getting bank financing.

Jackie