Can I claim first time buyer/owner occupy?

Question

I want to buy a house in a new city where I have not secured a job yet. If I buy a house as a first time buyer, get a mortgage as such, and then do not move to the city and convert this into a rental is this legal?

Answer 1

I have done it just don't let your lender know,keep a separated mail box for you so they can send you the mail you have to make believe that you live there for 1year.after that one year you can do whatever you want with the house and this has nothing to do with the IRS so it's legal. the first answer is just scaring you don't pay attention he probably works for a bank.They do not check to see if you moved in or not your lender will send all the mail to that house so you have to check it often.Good luck and go for it.

Answer 2

Of course you can. Nobody is stopping you from telling lies on your mortgage application.

But one of the documents you will sign when you close the loan indicates you plan to live in the home and will move in within the next thirty, sixty, or ninety days. When you fail to do that, the lender can call in the note as due in full. And when you cannot come up with the money to repay the note, they will foreclose. And when the sale of your former rental property does not bring in enough to cover the loan and legal fees, they will go after you for more money. In court. You know, the place where you need to pay for an attorney to represent you.

So while you can say whatever you want when you apply for the loan, being dishonest will land you in a world of hurt in the long run. Oh, and after all of that, you will have a very hard time ever getting a mortgage again. You see, once you commit bank fraud - yes, you're asking us if it's okay to commit bank fraud - banks no longer want to do business with you.

Answer 3

Excellent first answer (gets my vote). Someone asked a similar question a while back and another person assured him/her that they wouldn't get caught and that "everyone does it." Well that is complete BS. Society would cease to function if everyone lied about their intentions (why would I lend you money if I know you are lying?).

Look, the rate you will pay as an investor will be higher. That is a fact. If you are a true investor, it isn't going to kill your business. I know, because I am an investor. Sometimes the price of short term money shocks me. It even makes the long term investor money look appealing!

There are still some great rates on investor loans. I just closed on a 7/1, 30yr AM, I/O at 6.25%. Not too brutal considering par was around 5.875% at the time.

Will you get caught? Probably not. Is it worth selling out your integrity?

Good luck

Answer 4

yes.......I did