Lying To The Mortgage Co?
I have a property I'm looking at and the seller is willing to do "creative financing". I meet w/ him tomorrow night and should get more insight as to what he's thinking. My question has to do with a comment he made. He suggested that I should tell the mortgage co. that I'm going to live in the property that way I'll have an easier way of getting financed. I don't feel comfortable lying about something like this. What do you folks think? How do other people buy properties no money down time after time without saying you will live there? Your feedback is appreciated.
It is called Loan Fraud.
There are some programs that offer non-owner occ 100% financing... These aren't the easiest to use if you are looking for cash flow, but they are out there... Now, getting creative doesn't mean lying to the loan company... Don't lie and think you are being creative... There are better ways to handle it... Read posts on this site - and you will find creative ways that are honest... Or put some details on about your situation and some professionals might try to help...
Good Luck!
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Okay, as a mortgage banker I would say you DO NOT tell them you are going to live in the property. You probably own a principal residence which of couse will show up on your credit. They will ask you about that, it will raise a red flag to the underwriter and they will really question it also possibly flag it for a audit.
It is fraud and it can bite....I know as a mortgage banker it would snag my license so quick i would not be able to sneeze.
He wants to do creative financing...great....have him hold a second. Now even then your looking at some issues the bank would not want to know about that second because while there is a LTV (Loan to Value) there is also a CLTV (Combined Loan to Value) some lenders will not want you to go over 80% CLTV on a investment property. There are programs that will do 100% investment properties you just need to know someone who can find them.
If you have questions on who can obtain this kind of financing let me know. I can probably tell you what banks will do it then its your job to find someone who can work with them, unless your in a state I can broker in...which most of them.
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