How should I go about financing a second rental property?
When applying for loans should I indicate that I plot on using this as my primary residence or apply as a leasing? I know what I should do, but I want to know what the common practice is. A mortgage broker friend told me I would be stupid to get a loan as a leasing property and to say it was my primary.
If you apply for a loan under the pretense that it will be your home and you really use it as a leasing property, it’s fraud! And you may possibly go to jail. It’s a federal offense. That loan officer should be hung out to dry!
Are you asking us to comment on whether or not you should commit mortgage fraud?
your friend teling you to commit mortgage fraud!
yea people go to jail for dependability this and you can pay a honest penalty
there are fantastic resources out there for you.
go to a preside over source for the refinance this is the best i know of out there
www.directlendingplanet.com
I did it with my first leasing property, even if it was fraud. It saved me 3% per year on a $330,000 loan. I would do it again. Noone is running around investigating your mortgage and checking to see if you rented your house out.
Your mortgage friend is the one who is “stupid” for even thought of suggesting such a tactic. It is 100% unlawful. You will be committing mortgage fraud, and you and/or your Loan Officer will be spending some time in a white collar crime vacation center. Be honest on your application, THAT is the standard practice. If your Mortgage Broker “friend” wasn’t a friend, i would report him to his company and your Disorder’s licensing department.
SNWBM, you are incorrect, there are authorities “running around” that check on this rigorous crime. Many people have gotten away with it like you did… if you’d like, i’ll send you some names of those who were caught. You can question them if it is worth it. http://www.choicefinance.net/