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#2154850 - 11/27/17 05:54 PM Primary dwelling...not living there for 9 months
Bec Offline
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Bec
Joined: Jul 2010
Posts: 1,114
The Great White North
Borrower is purchasing a condo that is going to be her primary residence. It was disclosed as primary on the application and underwritten as such. Now, the day we have to get the CD out, we are informed that the borrower will be renting the condo out for 9 months and after that, will be using as her primary. (yeah)

SO, I am thinking that this has to be reunderwritten as an investment property. Do you all feel that is accurate? Not only that, but should she reapply?
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Lending Compliance
#2154853 - 11/27/17 05:58 PM Re: Primary dwelling...not living there for 9 months Bec
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,965
Bloomington, IN
Whether you have to underwrite the loan again depends on your lending policy and any investor requirements.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#2155215 - 11/29/17 04:22 AM Re: Primary dwelling...not living there for 9 months Bec
Docs Offline
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Joined: May 2016
Posts: 241
I agree with Dan. Just for example, the standard secondary market security instrument (FNMA/FHLMC document) Uniform Covenant number 6 is noted below. It would to wise to see what your security instrument says, in addition to checking on your lending policy and any investor requirements.

6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower’s principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower’s principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower’s control.
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Just my opinion, I could be wrong. - Dennis Miller

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