Posted by Melissa on June 13, 2000 at 09:08:06:
In Reply to: Don't do it. posted by John on June 13, 2000 at 08:31:14:
I've only come across one type of mortgage that requires that the house be
your primary residence. It was a first time home buyers mortgage with a low
interest rate. I believe the requirement was to live in the residence at
least 7 years. My mortgage lender told me that this was the only mortgage with
this requirement. My mortgage has no such requirement and I have not
run into any problems with renting out this residence while living elsewhere
(renting and purchasing other properties). My mortgage company is well aware of what I am doing. Check with a lender.
: In addition most, if not all mortages require that you live in the house as your primary residence. My friend tried to do the same thing and got caught. He had to sell the house because he had signed a number of contracts with the mortgage lender to get the mortgage and he lied about living in the residence.
: : I hope this is an appropriate question for your forum; if not, please accept my apologies. I am currently renting in Queens and considering looking for a new apartment in Queens or Brooklyn. I am alo considering buying a single-family home New Hampshire for my mother to live in--technically, I would hold a mortgage and be her landlord; her payments would cover mortgage, taxes and insurance.
: : : My question is whether the mortgage and my status as a landlord would be seen as a negative or a positive by landlords and realtors when I seek a new apartment. My current income (without the income from rent payments on the house) would not cover both rent here and mortgages in NH. Thanks for any advice you can offer.
: : : -Hilary
: : First: if your income can't cover both, how do you plan to qualify for that mortgage? Have you looked into your mother buying the house in trust? Contact your community senior center, your bank, your investment advisor, or a lawyer with elder-law experience.
: : Second: if your apartment is or will be stabilized, be prepared to defend agaisnt a non-primary tenancy eviction proceeding when your landlord discovers this. S/he bears the burden of proving it but you will still need a lawyer and there is no guarantee that your landlord will have to pay for your lawyer when you win.
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