Three Pieces of Misinformation

[Jeff Chisum]

Here are three pieces of misinformation I've encountered from client calls this past week regarding the 10% down second home occupancy loan:

1. The property has to be at least 50 miles from my primary residence. (This is an outdated policy; there is no distance requirement now).

2. I must stay in the property for at least 10 days out of the year. (In fact, there is no minimum number of days you have to be in the property. You just can't legally lose the ability to occupy the property when you want to. So, no lease agreements. Any restrictions are lifted after one year).

3. I can't have a Property Manager. (As mentioned in point 2, you can't have a Property Manager agreement where they require your property to be available for more than half of the year. Again, any occupancy requirement is lifted after you have owned the home for one year).

[Jeff Chisum]

Potentially.  Credit unions and bank portfolio loans.  Some lenders may have overlays to Fannie policy or what’s more common is incorrect interpretation or outdated info on Fannie’s current policy.