Posted on: 13th Oct, 2009 07:50 pm
My husband took out a loan for us on a second home. When he applied for the loan the bank required us to sell off assets for the down payment, which he did. The money was documented as to where it came from. He signed a second home rider. Several days later another loan that he and I were working on from a fully paid for commercial property funded. This loan on the commercial property was with a commercial bank and in both of our names Can the holder of the note on our second residence call the loan because another loan funded several days later?
The income from this property was included in the debt to income ratio but the pending loan was not included since we did not know when and if it would fund. It is a five year commercial loan that will be paid back in full in five years.
The income from this property was included in the debt to income ratio but the pending loan was not included since we did not know when and if it would fund. It is a five year commercial loan that will be paid back in full in five years.
Why would you think the lender would want to call your second home loan due in full? What motivation would they have to do that? Once the loan is funded all they want is for you to make your payments ontime.
lenders don't typically keep doing research on people once they fund loans.
lenders don't typically keep doing research on people once they fund loans.
A bank can call a loan due a day after funding if that is the day they discover something fraudulent was done. This is rare, but, can happen.
The bank will not call your loan due, especially if you still receive income from the property. Because it is a commercial property, I am guessing that you perhaps pay yourself rent for that property. I can not think of any other way you could use income from a commercial proeprty to help qualify for a resdential loan. If you still pay yourself rent from that property, nothing changed just because you got a new mortgage for that property. That is deducted as a business expense and has nothing to do with your rental income from the property, unless, due to the new mortgage expense you no longer have the same income from the property.
The bank will not call your loan due, especially if you still receive income from the property. Because it is a commercial property, I am guessing that you perhaps pay yourself rent for that property. I can not think of any other way you could use income from a commercial proeprty to help qualify for a resdential loan. If you still pay yourself rent from that property, nothing changed just because you got a new mortgage for that property. That is deducted as a business expense and has nothing to do with your rental income from the property, unless, due to the new mortgage expense you no longer have the same income from the property.
i'm in agreement that you have no jeopardy of having your loan called due. furthermore, that you didn't advise them of the impending commercial transaction isn't going to be construed in a bad way. and, as chris pointed out, lenders won't even notice such a transaction, in all likelihood. quality control continues to take place after closing, but it's typically only related to personal things, such as employment, etc.
The new loan changed our cash flow since the building was owned free and clear. Now there is a mortgage on the property that will effect our cash flow, however we have additional inheritance income that is far more than the new loan that we took on the commercial property.
And they did call me to find out what the new loan was for. Why would they do that ?
well, because they wanted to know. and that's basically it. if they felt it impacted their position adversely, they need to be aware of it. it's prudent on their part to do that. if they've not said anything further, it's likely not ever going to come up again.