Question for mortgage guys, loan guys, real estate guys, or anyone smart.

shdw01 · Oct 21, 2010

What does it mean exactly for a home to be "owner-occupied"?

My HELOC I applied for is pending upon it being "owner-occupied". I tried looking it up but couldn't find clear cut guidelines as what qualifies. Obviously it means you have to live there. How do you prove or disprove it?

I do not live there but it is not a rental and is basically just sitting there collecting dust. The place I sleep is a rental so I'm getting zero tax deductions/incentives from the rental. It is just closer to work and will be there until I fix a few things around the home.

Am I fucked? Is there simple things I have to do? Have mail sent there? Move in a bed? Physically sleep there everynight? weekends? help!

TIA

Ross · Oct 21, 2010

shdw01 said:
What does it mean exactly for a home to be "owner-occupied"?

My HELOC I applied for is pending upon it being "owner-occupied". I tried looking it up but couldn't find clear cut guidelines as what qualifies. Obviously it means you have to live there. How do you prove or disprove it?

I do not live there but it is not a rental and is basically just sitting there collecting dust. The place I sleep is a rental so I'm getting zero tax deductions/incentives from the rental. It is just closer to work and will be there until I fix a few things around the home.

Am I fucked? Is there simple things I have to do? Have mail sent there? Move in a bed? Physically sleep there everynight? weekends? help!

TIA

An underwriter discerns your residence from your income documentation. If your paystubs, W2's, bank statements all have your primary address on them, its going to be nearly impossible to prove to an underwriter that you live at the address you're trying to get the HELOC on.

shdw01 · Oct 21, 2010

I don't know what you mean....

I just had my paystubs changed to the new address (home for heloc)....all my bills go to my PO box.....

Are you saying if I move my bills to home I should be okay?

KAPPER · Oct 21, 2010

basically the bank is offering the line of credit based on the fact that this is your primary residence. You will need to sign and have notarized a statement that all facts of your application are true to the best of your knowledge.

Basically you will be lying and the bank could and would pull the line and potentially file criminal charges against you.

cincy_ · Oct 21, 2010

Banks won't do Jack.

I bought a rental. Told the lady at the bank that I would stay there for a month, then rent it.

The mortgage lady at the bank took care of it.

This is an industry that was giving loans to unemployed people a couple of years ago. They have tried to clean up the shit, but it still isn't that clean. Be upfront with the agent, and tell her to prepare paperwork that won't screw you over. She will oblige.

cincy_ · Oct 21, 2010

Once the mortgage is made, it's sold. Then what? The bank doesn't own it ... some guy in China or some pension fund in Germany does. Think anyone has the time to go back to a mortgage made in August to check if the person is staying there? Even if they do, so what? I changed my mind.