Can I close on 2nd primary inside of a year?

Question

Can I purchase and close one a new primary to hack less than a year after purchasing?

Current loan states it must be primary for 1 year. New loan gives me 60 days to move in.

50 days after closing would be my 1 year and would have renovation mostly finished to move into new.

All good and not mortage fraud.... right?

Sorry a newbie here.

Andrew Garcia · Answer

Hi @Adam Dordea, the underwriter will likely catch this and make you wait the full year prior to funding the loan.

They do not want to be held liable for approving the loan while you are not yet at the 1-year mark.

For all they know, you will move into the property on closing day.

In short, unless the underwriter misses it, it could cause the property you are trying to buy to be delayed by 2 months and may cause you to lose the contract and EMD.

Hope this helps! Let me know if I can be of any assistance.

Nathan Murith · Answer

Hey @Adam Dordea,

I am probably wrong here, and definitely not a lawyer or mortgage professional, but my understanding is it would not be mortgage fraud if you did not have the intent to buy two primary residences in the same year without disclosing this information.

Especially if you can show a life event (work, illness in the fam, death, other reason you need to move) that justifies a move, you should be able to get a new primary without committing mortgage fraud.

Again, I could be all wrong here :-)

Christian Ehlers · Answer

I've also heard something similar to what @Nathan Murith said. I don't believe a lender/loan can force you to stay in the original house especially if there's a life event issue that would make sense as to why you need to move earlier than 1 year. Definitely talk to your lender about it, as like Nathan said I'm not a lender myself. Just things I've heard in the business!

Can I close on 2nd primary inside of a year?

Can I close on 2nd primary inside of a year?

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