"mortgage question minimum required to prove primary residence for mortgage.

[masterjr33]

Long story short. I am getting a mortgage for my mothers house to fix her roof while she is in rehab.

i have to have the mortgage in MY name.
her credit is shot since she is in rehab and has no income. cant be on mortgage.
cant afford to do a "investment property loan" term is to short.

I am told i have to have the house:
Move in ready at time of mortgage closing. not a problem
im filing as this is my "primary residence "

#1 i dont want to move in there
#2 i dont want to live there.

me and my wife live just fine where we are. and i do not wish to "move" all our crap just to satisfy a mortgage "rule" for a house we are going to continue to rent out any ways.


anyone familiar with mortgage information can tell me what is the Minimum required to proof
"primary residence" ? just a electric bill? do i need to put a bed and some clothes in the house?
do i just need to get mail? are they going to send someone by to make sure i live there after the mortgage is complete. whats my risk. and what do i need to show them .

 

[thomas91169]

You cant file it as your primary residence if you arent living there.

If you are renting you either need to have lived there 2 years or have 20% down/equity in the home to rent, from what I recall on rental property laws.

 

[wht93gted]

I'm not a lot of help, but they used to have family opportunity mortgages where it was specifically designed for children securing mortgages for their elderly parents, or disabled adults, or kids in college.
I think it was Fannie Mae who had it, so find a broker who deals closely with them and check it out.

My mom was doing something similar with my grandmother, but I don't remember the final outcome. This was quite a few years ago now.

 

[Torch10th]

What you are attempting to do would only realistically be possible if you did not currently have a mortgage on your home.

During underwriting they will see that you currently have a mortgage and they'll want to know which house will be your primary residence. You can say that it'll be the new place, but then they're going to start requiring a few things from you on your existing house.

When the wife and I built new in 2014, we tossed around the idea of keeping my condo as a rental. In order for us to do that we had to show that we had enough liquid assets for 6 months to cover the old condo and two in reserve for the new house. None of that was required of me without the second residence.

Now your underwriters may not be that strict, but you can probably count on them wanting to see financials that include enough to cover the second residence for a while should something happen. If you have that extra cash sitting around, save yourself the time and interest on the mortgage and just get the roof fixed.

 

[2000gt4.6]

Do you have a car/truck paid off? If so you can take a loan out with it as collateral

 

[B0B]

What if you just open a HELOC on your main house and used that money for the roof repairs on your mothers house?

 

[masterjr33]

What you are attempting to do would only realistically be possible if you did not currently have a mortgage on your home. We currently rent our house

During underwriting they will see that you currently have a mortgage and they'll want to know which house will be your primary residence. You can say that it'll be the new place, but then they're going to start requiring a few things from you on your existing house.

When the wife and I built new in 2014, we tossed around the idea of keeping my condo as a rental. In order for us to do that we had to show that we had enough liquid assets for 6 months to cover the old condo and two in reserve for the new house. None of that was required of me without the second residence.

Now your underwriters may not be that strict, but you can probably count on them wanting to see financials that include enough to cover the second residence for a while should something happen. If you have that extra cash sitting around, save yourself the time and interest on the mortgage and just get the roof fixed.

We currently rent our house

 

[masterjr33]

Do you have a car/truck paid off? If so you can take a loan out with it as collateral

ya .. i have a 20K car that is paid off. .wait not i dont im on a mustang forum.

 

[masterjr33]

I'm not a lot of help, but they used to have family opportunity mortgages where it was specifically designed for children securing mortgages for their elderly parents, or disabled adults, or kids in college.
I think it was Fannie Mae who had it, so find a broker who deals closely with them and check it out.

My mom was doing something similar with my grandmother, but I don't remember the final outcome. This was quite a few years ago now.

thanks i will google this and ask my loan officer.

 

[Torch10th]

We currently rent our house

If you don't currently own a home, it'll probably just be assumed that you're going to be moving in. When I purchased my condo while renting, all they did was ask if I was going to be living there. I didn't have to provide any proof.

I still think it's kind of a terrible idea to take a mortgage out on the place to fix the roof though. If you take in to account what it takes to underwrite a mortgage, closing costs, fees etc. You're going to be ahead of the game taking a personal loan for that if you don't have the liquid funds to just cover it.

I know you didn't ask for advise, just what was needed for the situation, but in general anything to do with money and family is one of the easiest ways you can find yourself in a terrible financial situation. I know you're trying to help out your mother, which is admirable, but make sure you don't put yourself into a bad situation. Helping with what you can now will be far better for both of you in the long run then helping with everything now and getting yourself in trouble. Then neither of you are in a position to do anything.

Does the whole roof need to be done right now? Could you instead make repairs to leaky spots and save up for a total repair at a later date?

 

[masterjr33]

If you don't currently own a home, it'll probably just be assumed that you're going to be moving in. When I purchased my condo while renting, all they did was ask if I was going to be living there. I didn't have to provide any proof.

I still think it's kind of a terrible idea to take a mortgage out on the place to fix the roof though. If you take in to account what it takes to underwrite a mortgage, closing costs, fees etc. You're going to be ahead of the game taking a personal loan for that if you don't have the liquid funds to just cover it.

I know you didn't ask for advise, just what was needed for the situation, but in general anything to do with money and family is one of the easiest ways you can find yourself in a terrible financial situation. I know you're trying to help out your mother, which is admirable, but make sure you don't put yourself into a bad situation. Helping with what you can now will be far better for both of you in the long run then helping with everything now and getting yourself in trouble. Then neither of you are in a position to do anything.

Does the whole roof need to be done right now? Could you instead make repairs to leaky spots and save up for a total repair at a later date?

its been patched a few times. time to get it fixed.renters are complaining.

second reason to refy is. in rehab and SSI income for mom. with the house in her name they could come after if after she passes. this takes that chance away by putting the mortgage in my name.

 

[Torch10th]

its been patched a few times. time to get it fixed.renters are complaining.

second reason to refy is. in rehab and SSI income for mom. with the house in her name they could come after if after she passes. this takes that chance away by putting the mortgage in my name.

This makes a lot of sense. I would have included that information in your original post. You may want to add it for anybody coming to this thread.

She's in rehab currently, but is otherwise of sound decisionmaking facilities? I'm assuming the house is paid off? If that's the case I'd personally do the following.

1. Quit claim deed transferred from her name to yours. This gives you ownership of property and removes the asset from her name (sometimes required for medicaid etc.) so that it's not seized.
2. Secure a small personal loan or get a home equity line of credit for roof replacement
3. Use rental income to pay off loan as quickly as possible.

This way you don't have to prove primary residency. With a HELOC you'll also pay less fees than a traditional mortgage and you should be able to collect funds much quicker to get that roof replaced.

 

[masterjr33]

diabetes. both legs gone. "long story short" . sound mind. house owes about 25K

Quick claim deed already processed.
Current mortgage 400~ and im already renting it.

Im rfying the house since mortgage is still in her name.
im pulling 10K out . and refying for about 40K.

refy for 30 years at 40K$ is about 420$ a month . keeping mortgage to rent ratio the same. keeping my tenants in the house and happy.

soo. long story short. im refying a house. to put a roof on it.
what would i need to do the proove primary residence.
or do i just need to say " yes its my primary residence"

 

[PSUCOBRA96]

what you are asking is how to commit fraud. Once the lender finds out and they will you wont be approved and they will then turn you over to your states attorney for prosecution. Or two they approve and find out and they call the loan immediately which you wont be able to pay and you will be dragged to court, ruin your credit, and also prosecuted by the states attorney. If I remember correctly you will also be violating several Federal laws as well and get to be prosecuted in Federal court as well which includes fines and potential for prison time. So if you have not figured it out yet, THIS IS A BAD IDEA.

also NO Posts are to be considered legal advice and no Attorney-Client relationship is formed based on any postings/advice received in this forum by me. Consult your own attorney if you seek legal advice.

also if you are renting the home and do not tell your insurance company you will likely not be covered in the event of a loss.

 

[Drive XR7]

I don't have anything much to add but it sounds like you're in a tough situation with your mother being in rehab. Good luck, I can't imagine, but I'm sure its not easy having to step in. Good luck.

 

[thecrimson]

It's pretty easy OP....Send some bills to the address in the off chance they'd come and check. If you're renting, who's to say this isn't your Primary? Done deezy. People do it all the time.

 

[masterjr33]

what you are asking is how to commit fraud. Once the lender finds out and they will you wont be approved and they will then turn you over to your states attorney for prosecution. Or two they approve and find out and they call the loan immediately which you wont be able to pay and you will be dragged to court, ruin your credit, and also prosecuted by the states attorney. If I remember correctly you will also be violating several Federal laws as well and get to be prosecuted in Federal court as well which includes fines and potential for prison time. So if you have not figured it out yet, THIS IS A BAD IDEA.

also NO Posts are to be considered legal advice and no Attorney-Client relationship is formed based on any postings/advice received in this forum by me. Consult your own attorney if you seek legal advice.

also if you are renting the home and do not tell your insurance company you will likely not be covered in the event of a loss.

im not asking to commit fraud.This wasnt some bad idea i came up with. i am just asking if anyone knows what is required to prove primary residnce.
This wasnt some scheme i came up with. I am the only son of my widowed mother.
her house needs a roof and i need to pull equity to do it since i already dumped 15K of my savings into the house this year in repairs. including all new carpet. paint. and new A/c system in side and out.

Im not taking any of this as "legal advice" but i damn sure aint asking the loan officer processing my loan.

Currently its not "my house". its my mothers house. and mortgage and insurance in her name.
It will be my house once i refy.
Its a situation I was dumped in. and asking for any advise or experience from the community.

 

[masterjr33]

I don't have anything much to add but it sounds like you're in a tough situation with your mother being in rehab. Good luck, I can't imagine, but I'm sure its not easy having to step in. Good luck.

Thanks. its been tough.
at first we just closed up the house and shut stuff off. we floated the mortgage for 6 months.
then realized the rehab would be alot longer than expected.
definatly not something i was asking for. me and my wife were trying to buy our own house. this is going to **** all of that up by putting a mortgage into my name. not to mention the 15K i dumped into that house of my money in repairs.

 

[masterjr33]

It's pretty easy OP....Send some bills to the address in the off chance they'd come and check. If you're renting, who's to say this isn't your Primary? Done deezy. People do it all the time.

This is what i am hoping.
I think i can prove " intent " to move in and make primary.
possibly get some electric and water bills in my name over there.
once i rent it ill include power and water in the "rent" for 6 months.

 

[PSUCOBRA96]

If it is a rental, there is zero way to make it a primary residence without you moving in. You may not like the advice I gave you but do you like jail better? You may not think you are asking how to commit fraud, but you are. You asked how can you prove it is a primary residence when you are not going to live there. You cannot. You will have to buy the house, and they will look at your credit history, job history and everything else just like any normal purchase. Come tax times the Feds will ask you what your primary residence is. You will have to answer. You will have to make a mortgage payment and come up with a down payment if you buy the house. If you rent the house and you claim it as a primary residence it is fraud. They will catch this because someone has to claim the income off the rental property. The renters will show their primary residence as the rental property on their state and Fed tax filing as well.

If you want a second mortgage on the house co-sign for your mother. Sorry this sounds harsh but I am trying to keep you from making a bad mistake.