Do we have to finance as "secondary residence"?
We are applying for a loan to purchase a house that we will move into right after settlement and will live in exclusively for a long long time. Problem: we have a condo we just refinanced (with absolute intentions at the time of staying for 2+ more years). The condo weill be on the market by settlement on the house (don't actually have a contract yet, in negotiations) but it is unlikely the condo will be sold/settled. Our credit union said we have to take the new house as a secondary residence because of how recently we refinanced the condo (November) and we'll have to pay .25 point higher in interest rate as such. That still makes their rates the lowest we have found (APR). but we would love to get around that 1/4 point addition. Any ideas? by gwensam from Scottsdale, Arizona. Jul 5th 2011
MIKE CONVIN (mconvin)
#6 ranked lender in Delaware - 202 contributions
hi: If you intention is to sell the Condo before/after closing of subject property, Fannie and Freddie guidelines still require that you have equity in that condo with a possible appraisal to be completed to offset the debt on that condo or else lender will hit you for the whole payment on condo plus you new subject property. I work with private investors that do not have an issue with your condo being subject to be sold...(Mike 703 505 5300)
John Schweer (johnschweer)
#9 ranked lender in Missouri - 163 contributions
No it doesnt, it may be your credit union's policy to treat it that way. We would not.
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