Son needs to buy a house out-of-state as primary home

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Son needs to buy a house out-of-state as primary home

Jersey City, NJ · Member since 2014 · 56 posts · 11 votes

My son currently works in Chicago and has not purchased any property yet. He wants to buy a house in New Jersey with a view of moving here next year. Can he apply for a loan for a primary home ? Would appreciate any advice or leads for mortgages.

Thanks!

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Chris Wallace

Lender · Washington, DC · Member since 2013 · 32 posts · 15 votes

12y

He may be able to find a solution at credit union vs a big bank.

Try asking the loan officer if they have any FPR (future principal residence) programs.

It just the type of program your son is looking for, it will count the property as primary residence even though the borrower isn't taking immediate possession. There will be an addendum to the mortgage / affidavit to be signed at closing stating the intent to occupy the residence within 12 months of closing. And the interest rate is usually .5 -1% higher than a conventional loan.

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Account Closed
Investor · NY · Member since 2014 · 74 posts · 49 votes
12y
Short answer: no. Lenders will only give you owner occupant rates if your job is within commuting distance of the house. If he wants to use his salary at his current job to qualify for a mortgage on a house out of state, it will need to be an investment mortgage. Once he moves and has a job in NJ he can refinance as an owner occupant.
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Brie SchmidtBusiness Member
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Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
12y
@Naseera Mohamed - For him to get a owner occupied loan he must move in within 60 days and live there for 1 year
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Chris Wallace
Lender · Washington, DC · Member since 2013 · 32 posts · 15 votes
12y
He may be able to find a solution at credit union vs a big bank.
Try asking the loan officer if they have any FPR (future principal residence) programs.
It just the type of program your son is looking for, it will count the property as primary residence even though the borrower isn't taking immediate possession. There will be an addendum to the mortgage / affidavit to be signed at closing stating the intent to occupy the residence within 12 months of closing. And the interest rate is usually .5 -1% higher than a conventional loan.
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