First property mortgage

[Thomas Bennett]

I came across this home for sale that I'd like to buy for my sons, they will be paying for the mortgage.. I was told there's different rates because its going to be considered a rental ? Will I get a better rate if my family will be occupying the home?

[Sam Shueh]

Ask the loan agent what the most optimum method is.

[Michael Dumler]

@Thomas Bennett, your sons will technically be your tenants. Yes, there is a difference in rates and fees for an investment loan vs. an owner-occupied loan. In your particular case, however, it does not matter that your family will be occupying the home, you would still need to qualify for an investment loan to purchase the property. Furthermore, I believe there are a handful of tax codes/rules when it comes to renting to family members so make sure you're aware of those. Feel free to reach out to me via cell, text, email, etc. and I can connect you with several local lenders to help out if interested (contact info listed in my bio).

[Nathan Gesner]

Quote from @Thomas Bennett:

I came across this home for sale that I'd like to buy for my sons, they will be paying for the mortgage.. I was told there's different rates because its going to be considered a rental ? Will I get a better rate if my family will be occupying the home?

You can typically get better rates when it's owner-occupied because they see you have a vested interest in the property.

[Thomas Bennett]

Quote from @Michael Dumler:

@Thomas Bennett, your sons will technically be your tenants. Yes, there is a difference in rates and fees for an investment loan vs. an owner-occupied loan. In your particular case, however, it does not matter that your family will be occupying the home, you would still need to qualify for an investment loan to purchase the property. Furthermore, I believe there are a handful of tax codes/rules when it comes to renting to family members so make sure you're aware of those. Feel free to reach out to me via cell, text, email, etc. and I can connect you with several local lenders to help out if interested (contact info listed in my bio).

 My plan was to buy that property for my sons and let them pay the mortgage, then I would rent our current 4bdrm home out and the wife and I can find a smaller place for us to live. 

[Eliott Elias]

Conventional is going to give you a cheaper rate than a rental. If you already have a loan in your name you may not be able to do this