All Forum Posts by: Alan Lacey

If it was a conventional loan second home rider should indicate in first year primarily used for personal used then after the first year can be a rental full time. So way more than 14 days year one on a standard mortgage. Only thing I am familiar with having a 14 day requirement is the irs. Whether they audit it, or not, like anything else we do in life doesn’t mean that it is okay to breach a contract. There is a word for that, whether you get caught or not. Here is the language , again assuming standard Fannie/Freddie loan, https://singlefamily.fanniemae.... 

People have predicting this for years the issue is that people keep living longer and able to physically and financially afford staying in their homes longer than prior generations. Not saying it won’t eventually have an impact on supply but is has been talked about for at least 15 years or so and still not happening. 

30 year fixed already back to the 5’s this week on primary residence with some aggressive lenders . On invest ment property loans we need the market to get comfortable with rate range so they offer more premium on higher note rates. The secondary market isn’t dumb they know rates won’t stay at 20 year highs and did t want to pay a premium to buy a loan at a higher rate from a lender only to have it pay off in 6 months. If we get stability they will start paying up and you will see better rates and less points on investment as well.

Are they pricing that as an investment property? The buy down to that rate is not on most rate sheets unless they are doing it as a temporary buy down.

It might make it easier to sell but if it adds anything to appraised value it will be less than the cost of the fence.

just deed them on to title they can payoff your loan and if buying cash can get remaking fund to you however really maybe even structure as a gift for that matter, and then you can do a quit claim and remove yourself. Check with a title company for details. Not something anyone would consider doing unless family really,but suspect that would work.

Standard conventional note indicates you will occupy as primary for 1 year. Whether anything comes from that if you depart earlier probably unlikely, but to do so without approval from loan servicer is still a violation of contractual agreement.

Your one of the biggest factors in credit scores is utilization so if you took a draw against heloc And are over 50%utilizarion rate it will impact it. That is why most new debt negatively impacts scores as other than revolving tend to ow exactly what you borrowed. It is also why scores can go up if you take on new credit cards etc and don’t use them. Which can be a way to offset utilization in a heloc. However that isn’t a guarantee. Best ways to keep scores up is to have well established trade lines with 0 or no credit utilization. Also if you have cars you payoff in full each month to pay as early in pay cycle as possible so they hopefully report as 0 balance to credit. 

Doing a full application with two lenders is fine, but would recommend just stopping at quote. I certainly would not recommend being in process with two lenders as it is not good business to take up time and money investment from the lender you are using as a back up.