California | Landlord & Tenant Law
2/09/12, 3:01 pm
Legal Question
Can I be forced by my Mortgage Company to occupy a house that I am currently buying?
Can I be forced by my Mortgage Company to occupy a house that I am currently buying?
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Read More Answered By: Elliot Zarabi |
No, but they can either revoke your loan if they give you a low rate because you are claiming it is owner occupied or they can not give you the loan.
If you are getting a owner occupied rate, they can make in contingent on you occupying the property. |
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Read More Answered By: Timothy McCormick |
Only if you want the loan at the owner-occupied rate. Lending criteria and interest rates are very different for owner-occupied properties, versus rentals. People are much more likely to have payment problems with rentals, since they depend on tenants to be able to pay the mortgage and a flaky tenant or taking a long time to re-rent when tenants move, can cause cash-flow problems for the owner which can turn into late or non-payment on the loan. People also are much more likely to walk away from a rental that is losing money, than they are to walk away from their family home. So lenders usually want bigger down payments, and more interest for non-owner-occupied properties. Therefore, they can require you to live in your property if you want the benefits of an owner-occupied loan. |
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