Any ways to get owner occupied financing in a 1031 exchange?

[Bret Maryon]

I have a condo in San Jose that I bought in 2012 for $166,000 (it has been rented out since the purchase).  Market Value is now $400,000.  Im looking to complete a reverse 1031 exchange and purchase a single family residence for approx 1M.  I would complete my purchase in January and sell my condo in March.  

I will move into this property after 1 year.  Is there any way for me to get owner occupied financing to complete this purchase?  I'm guessing not, but just curious if anyone here might have some ideas/tips for me?  

[Dave Foster]

@Bret Maryon, In setting up the reverse exchange the EAT (exchange accommodating titleholder) will probably be an LLC that you are not a member of. Only your qualified intermediary will be a member of that holding entity. So owner occupied initially is going to be a non-starter.

Depending on what product is available you may be able to get a bridge construction loan with an extended rollover to perm which would give you the opportunity to construct and the 1031 and season as a rental before completing what would in reality be a cash out refi and conversion to owner occupied.  

@Upen Patel, have you seen a product like that on the streets where the construction/draw period would extend a year past the original CO?  We used it before on infrastructure and bonding for municipal works and for phased commercial but I've not seen it specific for residential.

The other option would be to simply get the best construction loan possible and then use the 1031 proceeds to pay down the mortgage before moving in later and doing a refi on a lessor amount.