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Updated almost 4 years ago on . Most recent reply

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Farah A.
  • Rental Property Investor
  • Houston, TX
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Primary, Second Home or Investment property?

Farah A.
  • Rental Property Investor
  • Houston, TX
Posted

Hi all, I would appreciate any guidance on my situation.

Last year My brother and I co-bought a house for my family to live at iin CA, since then ive relocated to TX and I am currently renting an apt. I didn’t actually live in that house.

I am looking to buy my own property in Houston towards the end of the year (2021) and I am wondering what my options are. I have about 20% saved up of a property within my budget and I am looking at possibly using it as an investment property down the line.

Woud it be considered a Primary Residence since it truly would be my first primary residence? Or a second home because it is the second House I buy/own or an investment property because I plan to invest it later?

Which Home Type would be the best and most honest step moving forward to avoid paying a higher downpayment and less interest rate?

I would appreciate any input. Thanks!

Most Popular Reply

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Joe Splitrock
  • Rental Property Investor
  • Sioux Falls, SD
18,564
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Joe Splitrock
  • Rental Property Investor
  • Sioux Falls, SD
ModeratorReplied

@Farah A. since you never lived in the CA property, that was never your primary residence and you never owner occupied it. The loan for that property should not be an owner-occupied loan. If you took out the CA loan as low down payment / owner occupied, that would be a problem when trying to get another loan less than a year later. In that situation, you and your brother made false claims on a legal document and it would be considered mortgage fraud. Hopefully that is not the situation.

Assuming you purchased the house in CA as non-owner occupied, then you are free to get an owner occupied loan in Texas.

  • Joe Splitrock
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