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Updated almost 5 years ago on . Most recent reply

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Eric Lin
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What type of Conventional Loan to get (investment vs secondary)?

Eric Lin
Posted

So I just recently purchased my first investment property, and during the process, the mortgage lender was trying to nudge me into getting the loan as a secondary residence (stuff like: "You'll get a lower rate, you can provide a lower down payment, you just need to stay there for 14(?) days out of the year, no one will care once the first year has passed, etc"). 

My parents always taught me to not do anything that I wouldn't feel comfortable explaining, so I declined and just went with an investment loan for 25% down and a much higher rate. I didn't feel comfortable lying about the purpose of the home since I have no intention of staying there and purely plan to use it for investment. 

Well, I'm currently under contract to purchase my second property, and a second lender has said the exact same thing to me ("are you sure you don't want to make this a secondary residence?") after I made it explicitly clear this is investment only! Am I missing something and this is like a "well known secret in real estate that no one explicitly talks about" or am I just meeting two shady lenders? 

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