Looks like it didn't take long to jump back up.

TOETAP_Ag095 said:

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Owner of a mortgage brokerage here, the lending companies have a right to see if you are living in your "primary residence". If not, you have committed fraud. How often if ever do they do this, I haven't seen it, but don't be stupid and don't commit fraud is my advice, but do you boo

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So if I buy my house fully intending for it to be my private residence and treat it as such for years, I'm committing fraud if I decide to move and rent it out instead of selling?

No.

We have been round and round on this. Your loan application declares your intention for the property. If you sign that document which is a federal application with federal penalties if you lie.

If you move in and sometime in the future your life circumstances change and rent the home it's fine. How long is fine? Well that's subjective and a grey area. But I would suppose 12 months or longer. Less than 6? Well that's a meaningful difference. I would advise not doing that unless you have a very good reason.

A divorce or job transfer are probably good reasons. You don't like the paint color is not. Apply common sense.

Did someone say anything about fraud? I missed that. Of course the underlying lender has a method to check whether the borrower that applied for a primary residence mortgage actually occupies the house within 60 days. Truthfully answering the question about intended occupancy doesn't obligate you to occupy that house forever or until the loan is fully repaid.

"Fraud" means you intentionally made a material false representation with the intent that someone rely on it to their detriment. You're not swearing to live in the house the whole mortgage term - only that you're intent when you buy is to live in it.

And gimme a freaking break that anyone is going to care that your plans/situation changed ___years after buying the house and decided to rent it out as long as you're timely paying the mortgage, have adequate insurance, etc. Even in the unlikely event that a lender learned of the change in status and actually cared, I would guess they'd just ask for a refinance into a different product. They're not going to come after you for "fraud". Just a guess as I have no experience.

I can't imagine anyone pressing for a refinance. The servicing would probably be with the 3rd, 4th or 24th servicer and current payments makes them happy.

The residency check is right after the 60 day mark. Borrowers probably never even know they've been checked.

Makes sense. My point was mainly that they probably don't care to begin with...and that it's certainly not fraud.

Absolutely not which is why that post was surprising.