Owner occupancy loan

3 Replies

Yes, if the next place you'll be moving to will be your next primary residence.

Generally, yes as long as your DTI works and you move into the 2nd property. All owner occ loans I've seen have the 12 month occupancy requirement. Keep in mind, when you go to get your the 2nd conventional owner occ loan, your "old" primary residence that you will turn into a rental the PITI mortage payment becomes a liability on your DTI calc and the rent payments from tenants becomes an asset. I've seen a few approaches lenders take with this. Some take 75% of the rent and include it was income to give a vacancy buffer. Some take Schedule E from your tax return and calculate it that way. In that case if you write off a bunch of repairs rehab and expenses it may hurt your DTI and make the house look unprofitable. You should take to multiple lenders and see how the approach differs between banks and what is consistent between the banks

Also - Most banks will require an executed lease on the "old" primary residence turned rental to prove it's rented out or going to be rented out by a certain date before you can close on your new 2nd primary residence loan.

Yes you can and on the surface it makes sense but as others outlined there are other factors that come into play. If you have a decent to good W2 income, good credit you should have no issues getting 2 loans.