percentage rates and investment'residential homes

I just bought a home for the first time and a home acros my street just
went on the market . It's a couple years newer and a little bigger. How
long do I have to live in my home if any, to get a residential interest
rate were I to buy this other house and move into it? I asked my lender
a similiar question, and she said a year, or show paperwork that I had
been transferred by my job, or changed jobs etc. Otherwise people would
be buying homes at a low residential rate, moving in, then buying
another and moving out, etc.

thanks for any help and thanks for help I've recieved on this forum in
the past.
EH

Re: percentage rates and investment'residential homes

In article <>,
"Ed" <> wrote:

> I just bought a home for the first time and a home acros my street just
> went on the market . It's a couple years newer and a little bigger. How
> long do I have to live in my home if any, to get a residential interest
> rate were I to buy this other house and move into it? I asked my lender
> a similiar question, and she said a year, or show paperwork that I had
> been transferred by my job, or changed jobs etc. Otherwise people would
> be buying homes at a low residential rate, moving in, then buying
> another and moving out, etc.

As I read this, you own a home, and want to buy the house
across the street. These are two separate properties, two
different deals.

The interest rate on the house you would buy would be based
solely on your credit rating and ability to repay the loan.
Since you have one house already, you likely wouldn't qualify
for the best rate due to your amount of outstanding debt.

If you sell the old house, then you likely will have no problem
buying the newer house.

If you want to try to keep the existing house as a rental, then
you are walking on thin ice. The loan that was given on this
house was most likely given to you assuming that it would be
owner-occupied. If you move out, depending on how the loan
is written, the loan could potentially be called and have
to be repaid within 60 days. In practice, as long as you make
the payments and keep current, it is unlikely that the bank will
call the loan.

-john-

--
============================================================ ==========
John A. Weeks III 952-432-2708
Newave Communications
============================================================ ==========

Re: percentage rates and investment'residential homes

John A. Weeks III wrote:
> In practice, as long as you make
> the payments and keep current, it is unlikely that the bank will
> call the loan.

I believe they call this the "don't ask, don't tell" policy. =)

Re: percentage rates and investment'residential homes

Waiting at least one year or taking the advice in a previous post are better
courses of action for now

www.AmericanWest.biz


"Ed" <> wrote in message
news:
>I just bought a home for the first time and a home acros my street just
> went on the market . It's a couple years newer and a little bigger. How
> long do I have to live in my home if any, to get a residential interest
> rate were I to buy this other house and move into it? I asked my lender
> a similiar question, and she said a year, or show paperwork that I had
> been transferred by my job, or changed jobs etc. Otherwise people would
> be buying homes at a low residential rate, moving in, then buying
> another and moving out, etc.
>
> thanks for any help and thanks for help I've recieved on this forum in
> the past.
> EH
>

Re: percentage rates and investment'residential homes

"Ed" <> wrote in message
news:
>I just bought a home for the first time and a home acros my street just
> went on the market . It's a couple years newer and a little bigger. How
> long do I have to live in my home if any, to get a residential interest
> rate were I to buy this other house and move into it? I asked my lender
> a similiar question, and she said a year, or show paperwork that I had
> been transferred by my job, or changed jobs etc. Otherwise people would
> be buying homes at a low residential rate, moving in, then buying
> another and moving out, etc.

If your credit is good, if you can make a substantial downpayment, and if
you can keep up the monthly mortgage payments, you should be able to buy any
property you want at a "residential interest rate" and use it for whatever
purpose you wish once you own it.

Re: percentage rates and investment'residential homes

thanks for all your answers, esp. the last. very interesting stuff.