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Buying Real Estate Out of State

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Anyone had any experience with buying real estate out of state?  I'm curious on how a mortgage would work.  Is it easier to say it will be owner occupied for the mortgage process?  Would it be conceivable to have a job in Orange County but claim to owner occupy a house in Las Vegas? 

Plan on putting 20% down on a 30yr fix.  But perhaps less than 20% down so I have more liquidity for other potential opportunities.

Thanks in advance for all your wisdom.

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AIien said:   .  Is it easier to say it will be owner occupied for the mortgage process? 
  
Is this going to be a rental, primary residence or vacation home, what?

You can only say its owner occupied if it is.    You don't get to pick the "easier' option.
 

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AIien said:    Would it be conceivable to have a job in Orange County but claim to owner occupy a house in Las Vegas? 

 

  why don't you just buy a house in the OC?

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Don't commit fraud if you can avoid it.

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Is it easier to say it will be owner occupied for the mortgage process?
  
Isn't that like claiming that you don't make any money so that you don't have to pay income tax?

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It's only fraud if they start looking. And they only start looking if you start missing payments.

The mortgage originator only wants to know that it's a primary residence the day of origination. What happens after that is up to investors. You could conceivably lose your job 3 years down the road and rent the primary residence out anyways. As long as money is coming in, no one will raise a stink.

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JavaCoder said:   
The mortgage originator only wants to know that it's a primary residence the day of origination. What happens after that is up to investors. You could conceivably lose your job 3 years down the road and rent the primary residence out anyways. As long as money is coming in, no one will raise a stink.

  You want to make sure, if your state does this, that you don't keep the primary residence property tax break.

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Yeah, tax exemption is a separate consideration. Since the OP seems to continue earning his paycheck in California, my guess is that nothing will happen in that department, makes it too easy for Nevada to sue if they find out they're being stiffed on property tax exemptions.

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You can apply as a second home, that is easier if you own another home. The underwriter may ask you to justify how do you intend to keep it as a second home, LV may not be too difficult to justify for someone who lives in OC and makes trips there regularly for entertainment purpose.

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JavaCoder said:   It's only fraud if they start looking. And they only start looking if you start missing payments.

The mortgage originator only wants to know that it's a primary residence the day of origination. What happens after that is up to investors. You could conceivably lose your job 3 years down the road and rent the primary residence out anyways. As long as money is coming in, no one will raise a stink.


No, fraud doesn't depend on getting caught. Owner-occupied status can certainly change in the future - my recent mortgages spell it out fairly clearly with a pretty modest period of 6 or 12 months that I expect in good faith to occupy the property. But OP is not asking if he should owner occupy or even what that means. If you're contemplating getting away with something, I think this is a poor choice. One big challenge is insurance. If there is any significant claim, a regular homeowner's policy likely won't cover if you have renters instead. And if you get a proper LL policy, your mortgage holder is going to see that.

About 10 years ago, I had a lender balk because they didn't believe I intended to occupy. I did, but they were nervous that I had no plans to sell the home we were already living in. The properties were only about 10 miles apart, so there wasn't any major life changing commitment I guess. And to be fair, housing market collapses were already well underway in many markets. Anyway, I actually had to switch lenders for that purchase. 

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AIien said:   Anyone had any experience with buying real estate out of state?  I'm curious on how a mortgage would work.  Is it easier to say it will be owner occupied for the mortgage process?  Would it be conceivable to have a job in Orange County but claim to owner occupy a house in Las Vegas? 

Plan on putting 20% down on a 30yr fix.  But perhaps less than 20% down so I have more liquidity for other potential opportunities.

Thanks in advance for all your wisdom.

  
You're better off putting 20% down and claiming as rental property than putting < 20% down and claiming owner occupy / primary residence.

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Housing market speculative peak indicator?

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1) It's fraud. Don't do it.
2) It's about time for another market correction.
3) Vegas? LOL. Agree with Brettdoyle.

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brettdoyle said:   Housing market speculative peak indicator?
Or beginning of irrational exuberance phase in the market based on a broad based rally.. CAP ratio of single family homes is just ridiculous

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