Lender's veiw on primary residence??

5 Replies

I own a 2 family home that I reside in. I recently talked to a loan officer from a local credit union. I was applying for a personal loan which I didn't get approved for. My credit age is too young and my revolving credit utilization is too high. In speaking with him I just inquired about home loans and that I wanted to purchase a single family owner occupied, he was telling me that it wouldn't be considered my primary and i would have to have more money down than a typical low down fha loan. Anybody have insight or experience with this? Im currently working harder on lowering my utilization %.
@Peter Kopchik How far is the area you’d want to buy in from the place you currently live in? What type of loan did you use to buy the house you currently live in? I’m guessing your current home is fha or another owner occupied loan and I’m guessing you want to buy in another local area with another owner occupy loan. Most banks will deny this. To Get around this you probably need to refinance your current house to conventional loan with 20-25 percent equity and then go do fha again on new house
Originally posted by @Peter Kopchik :
I own a 2 family home that I reside in. I recently talked to a loan officer from a local credit union. I was applying for a personal loan which I didn't get approved for. My credit age is too young and my revolving credit utilization is too high. In speaking with him I just inquired about home loans and that I wanted to purchase a single family owner occupied, he was telling me that it wouldn't be considered my primary and i would have to have more money down than a typical low down fha loan. Anybody have insight or experience with this? Im currently working harder on lowering my utilization %.

 Find a new lender. You have to actually owner occupy is the only thing, which means that it must make sense that you would owner occupy... shorter commute, better neighborhood, more bathroom space, nicer kitchen, etc.

Thanks everyone for the replies. @Chris Mason @Harjeet Bhatti @Randy Forcier , @Caleb Heimsoth I actually talked to the lender that got me my mortgage for my home now. She gave me basically the same reasons. She said because I live in a multi right now a single family just about anywhere should be easy even if its around the corner. A multifamily is not impossible but like you said it has to make sense to the lender why I would be moving there and out of this house. I have all intentions of occupying the house for at least the minimum time required. My girlfriend would love to have a single family house after living under and close by tenants for this past year. For me, I would love a single family too, but I can't can't anymore cashflow out of another property if we're the only ones living there and I'm more flexible living under tenants and seeing them daily, even though it is starting to wear on me. I think my ultimate short term goal so were both happy is to find two single family homes on 1 property or in one deal like 2 neighboring properties. I know with time the right deal for me will show up and I will have all my affairs in order and am able to capitalize on the opportunity. So what I learned is that lenders are very different. One says no way you can't do that, the other says yeah thats simple or at least its not impossible. I think Ill stick with the more open-minded one. She is so positive about everything. She gave me my hope back that the other guy drained from me. If anyone needs a positive mortgage lender in the southern Connecticut area Id be happy to exchange contact info with her with you.