All Forum Posts by: Account Closed

Can't speak to NV but many conventional first time mortgages require 3 years residency in NY... and if it seems sketchy by him telling you something is afoot, why go with it?

I didn't go with it. I'm here to confirm it. I received confirmation from everyone that it is indeed sketchy.

0 Votes

Las Vegas, Nevada

Quote from @Wayne Kerr:

Haven't made a single deal yet and already intending to commit mortgage fraud...

There is a strategy here but you are doing it wrong

The strategy would be to buy the house, as a owner occupant, live in it for a year (barring any life changing events) then move out and sell/rent. You do anything else and you're going to find yourself walking on thin ice

I had someone try and do this with a HUD home I bought - thing is I already lived in the neighborhood and wanted to buy the house to move into. I am moving into the house and will be renting my current house. I actually like the new one so much I'll probably be there for the next 5 years. Just put me a big 12x20 shed in the backyard even

I’m not intending to commit mortgage insurance fraud. I just wanted confirmation/clarity on what my mortgage broker told me because it contradicted my reading/research, so I just wanted to confirm.

Thank you for the useful information.

0 Votes

Las Vegas, Nevada

Quote from @Bill B.:

You did say you and your lender don’t plan on telling the processor the truth, or at least the whole truth.

Click on the magnifying glass in the upper right. You’ll see this question is literally asked monthly, if not weekly.

That’s part of the reason you get short tempered responses. That and the rest of us don’t want to lose favorable financing options unique to the US because of the actions of new people to the field. That’s how restrictions, fines, and outright denials start happening.

Honestly, I assume you already know all this. If not, then you should probably read more books and watch more videos before getting started. The only thing worse than not getting started is getting started off on the wrong foot.

Ps. I’d start looking for a new lender. If he’s willing to cheat one side of the deal to make money he’s probably “morally flexible” about screwing anybody to make more money.

I guess, let me clarify: this is my first home that I’m buying, and I’m trying to make this a worthwhile investment. Whether it be a buy and hold with some rehabbing involved or house hacking/brrrr, the home is still going to be my primary home with hope of also making it my first investment, if that makes sense.

I appreciate the clarity. What my broker was telling me contradicted the reading and research that I was doing, so I wanted to confirm what he told me was something legitimate; in other words, I wanted to see whether someone else have done it, and I was just not understanding something.

It was just a stupid question, and judging by everyone’s reaction to it, also offensive apparently. I appreciate you letting me know why. I just thought the forums were a place to ask any kind of question without judgment: that’s literally how the podcast framed it.

1 Vote

Las Vegas, Nevada

Quote from @Stephen DeThample:

I would not repeat anything your mortgage broker tells you to do illegally online. It could get of you into trouble. You should look into hard money lenders like Kiavi. It will cost more but will give you credibility later. Good luck 🍀

That’s good to know! What he was telling me contradicted what my reading and research was telling me, so I wanted to confirm that what he was saying was appropriate and legal. Thank you for providing the hard money lender’s name: much appreciated!

0 Votes

Las Vegas, Nevada

Quote from @Jeff S.:

Buying your first property by committing mortgage fraud suggests to me that real estate might not be for you, @Account Closed.

Where did you find a broker willing to play this game?

If the property is reasonably habitable and you really and truly intend to live in it during the rehab, there are several ways to do this including a 203k loan or conventional.

There are a lot of ways to make money in real estate honestly. I’m not sure why breaking the law appeals to you.

First off, this is just a question. I am planning on living it: that is why I qualified for an owner-occupied mortgage. Hence, I called it a live-in flip. If I have to hold it for more than 6 months, then I'll hold the property, rent out the other rooms and unit, and house hack it.

Nowhere did I say that I *wanted* to commit mortgage fraud. Also, nowhere did I mention that "breaking the law appeals" to me.

I'm asking a question, which is what the forum is for. I'm new to all this and trying to learn what is possible. Altogether, there is no need to be rude and put your negative energy on me by saying that 'real estate' might not be for me. Keep your bad energy, negativity, and assumption to yourself.

0 Votes

Las Vegas, Nevada

Hi!

I'm trying to get into flipping in the Las Vegas, NV area. To finance my first flip deal, I'm planning on using a conventional loan through my mortgage broker. I'm telling him that I'm buying the home as my primary residence (i.e., standard owner-occupied mortgage), and I plan on living in it while I rehab it (i.e., live-in flip). Because I'm planning on living in it, my lender and I are not planning on telling the processors that it's a flip/investment property to get a lower interest rate, points, etc. I told him that I'm planning on living in, rehabbing, and selling the home within 4 months. When I told him that, he said I need to wait until 6 months to sell the home to avoid the pre-payment penalty. He said that most mortgage brokers want you to own a home for at least 6 months if it's an owner-occupied mortgage; he continued to state that if I plan on selling the home that quick, I need to go through with characterizing the home as a home flip or him and the processor will be losing money.

Has anyone tried flipping using a conventional mortgage? Has anyone had issues using a conventional loan, in regard to pre-payment penalties when selling your flip before 6 months?

P.S., I'm still new to all this: this is my first post. If I'm missing something or this question doesn't make sense, please let me know!

0 Votes

Las Vegas, Nevada

All Forum Posts by: Account Closed

Account Closed has started 1 posts and replied 6 times.

Post: Flipping with a conventional loan restrictions?

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Post: Flipping with a conventional loan restrictions?