How do mortgage companie know a residency is a “Primary”?

Question

Looking to buy a property im Preaprroved for an FHA 3.5% down. But they say I must live in the residence for 1 year. My plan was to do a light rehab of the interior within the first few months of owning it and use it as an AirBNB rental after that.

How do they “confirm” it is my primary residence?

Do they show up at your door to check if you live there?

What is the process for this?

Thanks!

Bill B. · Answer

Ways you’ll be busted and end up in prison...so that you can save 1/2 a percent interest.

Wrong address on driver license, credit card bills, insurance forms.

Wrong kind of insurance for a primary

Website listing the place for rent

Tax returns showing rental income

The fact you have a different property homesteaded

The fact you posted you were going to do it on a real estate website for landlords

Your official mailing address

You’re right, screw those lenders for trying to help people own a home they want to live in, I’m sure they didn’t do it for you when you were really buying your primary  at least you’ll save a few hundred until then  it’s not like you’re lying to the federal government, the keeper of all the records

Logan Graham · Answer

I am not sure how they check but they are on top of it with an FHA loan. Also, by not living in the house for at least a year with an FHA that is mortgage fraud. My best advice is always to obey the law.

Andres Rivero · Answer

@Ramiro Rodriguez

I understand what you are trying to do but like everyone here says. It’s illegal as hell to do. My suggestion is to rehab it while you live there then when done Airbnb it by the room or rent out the extra rooms to help pay the mortgage until you have lived there enough to legally move out then have your room rented. Sometimes you can collect more by the room than renting it out to one person.

Account Closed · Answer

@Ramiro Rodriguez you can consider living there and renting by the room on Airbnb, after a year your free to do what you want

Ricardo S. · Answer

From my research 99% of the time they don’t check. Because after you start making payments your loan is usually sold to another bank.

Some of the ways they check is the following;

Your voter registration information

Your drivers license address

Your W2 and tax returns.

Address on your credit reports

Utility bills

You can airbnb your primary residence. That is not illegal. It is illegal though to rent it out on a lease before the 1 year mark.

Danielle Wolter · Answer

I'm not sure how they check it, but your taxes will show the rental income. If you're getting an owner occupied loan, best to live in the property for a year to avoid being pinned with mortgage fraud.

Jon A. · Answer

They can and will send someone over there and knock on the door and peek in your windows looking for furniture and signs of life. Then they will charge you an inspection fee and put it on your mortgage statement. They cannot dictate where you lay your head at night but they will insist on copies of your bills to prove that you are not renting it out.

Theresa Harris · Answer

There are lots of ways, so don't risk getting in trouble.  As others said, they can see your rental income on taxes or if it is deposited into your account every month along with payments for where ever you are living, utility bills, mailing address, etc.

Craig Jeppesen · Answer

It doesn’t matter if they know or not. You signed the contract and agreed to it. They believe you are an honest and trustworthy person. Don’t break that trust by committing mortgage fraud.

Ramiro Rodriguez · Answer

My plan is to live there and rehab while i live there, then flip or rent after the 1 year mark.

How do mortgage companie know a residency is a “Primary”?

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