A real Owner occupied loan but lender wants proof BEFORE closing!

1 Reply


I've read alot of posts from people that sound like they're trying to trick the owner-occupancy requirements on mortgage loans.  I'm currently in a backwards situation where I really do intend to live in the home, but lender wants unreasonable proof!


Is it common with lenders to require PROOF that I'm NOT lying?

Is there any kind of standard to Prove owner occupancy intent BEFORE closing?

Any ideas?

Here's the backstory:

A deal came up on a house literally down the street from my current home that I couldn't pass up.  The seller is in a unique situation where they're moving out of town and needed someone that can be flexible on the closing date.  

So my plan is to close on the new house with conventional OO mortgage and immediately move in and get my current home cleaned up and listed right away. The market is super hot in the area and I expect to have multiple offers on day one being listed, then take the proceeds from the sale and pay down the new mortgage to get rid of the PMI.

I applied with two lenders, both conditionally approved the loan. The only problem is one of them just backed out because they think I'm buying this bigger, nicer, more expensive home as a rental (Even though the numbers make no sense as a rental). They say because the new house is so close, I need to list my current house on the MLS before closing to PROVE i actually intend to move!

Now, this would make no financial sense to list my current house with a bunch of boxes in it (and a dog) and put up with the hassle of showings and all that while I'm in the middle of moving... Especially when I'm going to have it empty and move-in ready in just a few weeks.  the market is so hot here I'll be flooded with requests to show and a house that's been on the market more than a couple weeks would be second guessed for sure.

So My question is this: is it common with lenders to require PROOF that I'm not lying about occupancy?  

Should I be concerned my 'back up lender' is going to back out too?

Is there any kind of standard for Proving owner occupancy BEFORE closing?

Any ideas?

I Appreciate your  thoughts/experience on the matter!


Don’t know how you would provide “proof” but you can always list the property with “no showings” for how many ever weeks you want. Typically an agent can put these remarks in a section in the mls listing only visible to other agents. Then your agent could print out the “public” version and submit.