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tmendoza27
329 Posts |
 Posted - 05/15/2008 : 12:52:08 PM
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| Just curious on what lenders consider a 2nd home, as opposed to an investment property. Customer has a home, and another home, where her son lives in, which is about 10 miles away from current home. She also, has another property, that is being rented out. Can the house that her son lives in, be considered a 2nd home, since she is not getting rent from her son? |
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katbunk
2393 Posts |
Posted - 05/15/2008 : 12:53:44 PM
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| It won't fall under 2nd home, has to be more than 50 miles away and in a resort or vacation like community. You'll have to do it non-owner and hit with the full payment since she receives no rent. |
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tmendoza27
329 Posts |
Posted - 05/15/2008 : 12:56:57 PM
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| Well this house that she is trying to refinance, is free and clear. |
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katbunk
2393 Posts |
Posted - 05/15/2008 : 1:58:48 PM
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| which one is the free & clear, her residence, her's son's or the other property? Free & clear now has no bearing on it. You'll need to hit her with the new payment as an investment property if you're referring to the one her son lives in? |
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AGreene00
2901 Posts |
Posted - 05/15/2008 : 2:01:41 PM
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| If it is 10 miles away that is going to be investment property every day of the week. Unless it is located on the lake, on the beach, or some circumstance like that. |
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monarchdad
1811 Posts |
Posted - 05/15/2008 : 2:29:34 PM
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quote:
Originally posted by AGreene00
If it is 10 miles away that is going to be investment property every day of the week. Unless it is located on the lake, on the beach, or some circumstance like that.
Even that likely wouldn't fly. Who vacations 10 miles from their primary residence? |
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808
2890 Posts |
Posted - 05/15/2008 : 2:49:51 PM
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you can have a 2nd home 5 miles away as long as it makes sense. If the 2nd home is an oceanfront or intercoastal waterway condo that will work everytime. I know a broker who got a couple a 2nd home loan on a house in a nudist colony less than 10 miles from their PR (Caliente Resort, the same one Paris and Nicole went to on their 'a simple life' reality show) for $300k and their PR was worth $175k.
The whole key to a house being classified a 2nd home is the amount of time spent there and that you cant collect rent. Someone can live there, you just can't charge them anything |
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tmendoza27
329 Posts |
Posted - 05/15/2008 : 2:57:22 PM
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| Well this house was their original house, which they've owned for 20 yrs..but they ended up buying another house, which they live in. But, they also have this old house, which is free and clear, which there son,lives in, which they dont really charge him rent for. So just trying to see if we can put it as a 2nd home. |
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katbunk
2393 Posts |
Posted - 05/15/2008 : 2:59:06 PM
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| one of the key points is the borrower actually has to occupy the property at times during the year and you don't have that situation. This must be done as a non-ower. |
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dkendall1979
11116 Posts |
Posted - 05/15/2008 : 3:18:30 PM
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If anyone other than the borrower is living in the other home, it is an investment property, not a 2nd home.
If it is in anything other than a vacation area, it is an investment property.
If the borrower needs to go "stated" it is an investment property.
2nd home is a SECOND HOME. A home away from home. Not rented, not occupied by someone else, bills gotta be in the borrowers name, etc.
Hope this clears it up for you. |
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Xpatriot
333 Posts |
Posted - 05/15/2008 : 4:28:16 PM
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| lol, a home that is 10 miles away is not a 2nd home, a home 200 miles away could be. |
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velecico
4209 Posts |
Posted - 05/15/2008 : 7:28:48 PM
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If its not your only home and its in a vacation area ? |
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sheriephillips
416 Posts |
Posted - 05/15/2008 : 9:51:46 PM
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quote:
Originally posted by velecico
If its not your only home and its in a vacation area ?
The original poster already said her son lives in the property and doesn't pay rent. It's not a 2nd home regardless - it's an NOO property. |
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rtrefflich
3935 Posts |
Posted - 05/15/2008 : 10:03:41 PM
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FYI for tax purposes only, not lending purposes, that can be considered a second home, if you have a home that you rent out below market value to a family member.
For lending purposes, it doesn't have to be in a vacation area, it could be a home in a city that only you occupy (or a family member) for vacation or other purposes. I have had second homes in Los Angeles, Salt Lake, San Antonio and Las Vegas, none of these would be considered vacation areas (the homes are in the suburbs of said cities and in no where near the tourist areas.
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808
2890 Posts |
Posted - 05/15/2008 : 10:05:51 PM
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I'd talk to the AE or U/W w the lender you want to go with. A couple of yrs ago I tried to get a 2nd home done w Greenpoint and they wouldn't go for it because it was worth more than his O/O and only 17 miles from his PR. I sent it to Bank United and they did the loan no problem. It was a condo on the Gulf of Mexico and the prices tripled in 4 yrs. Some underwriters have common sense, some are robots and don't.
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