Posted on: 08th Apr, 2009 06:52 am
how does a mortgage company or bank verify if a condo is owner occupied for refinancing?...i just started renting out my condo less 5 months ago and want to refinance. i've been told that if it is non-owner occupied, the rate would be 3.750% higher. what type of verification does a bank do to confirm a unit is owner occupied. i have no other mortgages (i moved in with my boyfriend and we are renting a house since my condo is a studio efficiency and not suitable for 2), an excellent credit score, and can meet a 90-10 ltv.
well, they can always ring the doorbell and see who answers the door, but (i jest) that's not likely. you're going to have to complete a loan application. on that application, you are to give them your current address. if you list the condo as your address, your credit report will, in all likelihood, contradict that. then you'll have some explaining to do. the only way in which you'll be able to do this loan as an owner-occupied loan is by moving back in, or being so incredibly persuasive that the lender agrees.
How common are owner-occupied clauses in refis requiring the unit be owner-occupied for 1 yr, for example, after close?
i don't know of any such clauses that are a part of a refinance transaction. usually, such a stipulation will be included in a first-time homebuyer situation when there is a special rate or something of that nature.