I put in an offer on my first real estate venture, which is a house to flip, and it was accepted. I went the conventional route, which I see now is a mistake because I will have to owner occupy for a period of time before reselling. This period of time will put me past the prime house selling market of spring and summer. Is there any way to change this now? If not, what is my best option?
Congrats on the deal! When you said you went the conventional route didn't you mention your bank it was an investment property? Or you just bought it as if it was your primary residence?
@Tracy Bremmer if you havent closed yet, you still have the opportunity to apply for a non-owner occupied loan.
@Tracy Bremmer How much did you put down? Like others mentioned if you haven't closed yet you may be able to finance it as an investment property but this will require a larger down payment and higher rate. However if a life situation changed after you bought the property like you needed to move, job relocation, needed to sell and buy larger/smaller then it won't be as bad a look that you rehabbed and sold it. I believe you're referring to the affidavit of occupancy. It won't prevent you from selling. But yes if you flip it and try to finance again later it could be a bad look.
I put 5% down, and I know that my realtor knew it is an investment, but when I talked to the lender, she made it clear that it is being processed as an owner occupancy. What is the amount of time I would need to occupy? Honestly, I don’t have more to put down and be able to complete the renovations without taking on further debt.
@Tracy Bremmer time of occupancy is usually at least 1 year. It should state it in your loan documents. It's the price you pay for the low downpayment