(Amateur) Owner Occupied Question

[Andrew Jervis]

Hi All,

I recently introduced myself to the BP community here, but as general background I have been researching for a year or so now and am starting to build up the knowledge base to where I feel comfortable buying my first property. I am looking at 2-4 unit multifamily's in the Philadelphia area. Part of the reason why I caught on to the real estate bug was that I really enjoyed helping my girlfriend search for her first house, which she purchased earlier this year and which will be done construction and settled on Late October. We have been planning to move in together for awhile now, thus causing a dilemma for me in owner occupying. My plan as of now is still to move in with her at her new place.

I know that there are financing benefits of owner occupying, but just how significant are these benefits? It's hard for me to try to quantify how much my rate would increase and the general impact without owner occupying. 

Also, I'm not sure exactly how the terms of contracts with lenders work or the interpretation of the law, but it has been suggested to me by a few other investors I have met that I could live there for a few months and then "have to move" and just keep my mailing address there for a few months while then renting the property. Can anyone comment on the legality of this, or if it would violate a typical contract with a lender? Generally any information on owner occupancy (especially specific to the Philadelphia area) would be great.

[Robert Curls]

My experience has been that whenever you represent that you're going to be living in the property part of the closing package includes an affidavit that states that you will live in the property for at least one year.  Beyond the one year you can do whatever you please.

I'm a firm believer in always acting with integrity, (even though Banks may not).   If you don't want to live in the property you can still get a great fixed interest rate on a long term loan, you will just have to put 20-30 % down.