how to classify my home for mortgage app question?
Posted in Renting & Real Estate on 04/30/2009 12:06 pm by admin
urban_rednek asked:
I am getting ready to re-fi my home and want to know how i need to classify it for my mortgage app. It’s the only property i own, but last year i had to take a job out of state (economic reasons) so i am currently renting it. Can i still consider it my primary residence or would it be considered an investment property or a second home?
I am getting ready to re-fi my home and want to know how i need to classify it for my mortgage app. It’s the only property i own, but last year i had to take a job out of state (economic reasons) so i am currently renting it. Can i still consider it my primary residence or would it be considered an investment property or a second home?
How much more are interest rates for an investment property given plenty of equity, great FICO and steady income?
MICHAEL
04/30/2009 at 2:53 pm
JERALD
For tax purposes and mailing address purposes if that is still your primary residency then it is, but if it isn’t then it isn’t and you will have to classify it as a rental property which has slightly higher interest rates.
05/02/2009 at 8:29 am
NICOLAS
You have to classify it as investment property. The interest rate doe snot matter, it is a legal classification. You have to live in your primary residence and you are not allowed to rent second (vacation) homes.
05/03/2009 at 4:30 am
RANDAL
Be careful! You have to classify it as rental property. If you don’t and the lender discovers that it’s a rental, you may be libel for mortgage fraud (very unlikely).
If the utilities, phone etc. is in your name at the house, then you may still be able to claim owner occupied. If your tax return shows the house address, especially state tax return (if your state has it), then you are safe.
If the job is semi-temporary, also owner occupied.
Interest rates are usually a little higher, but may not be significant to risk being dishonest.