Is it true that the rate for an investment property is more than a primary residence?

*sigh* my husband and I have not filed for divorce yet. The lender is saying something like I already have a primary residence (even though Im not on the mortgage, my husband owns a home) so they will only give me a rate for an investement property at 4.25% which is more.

I am a first time home buyer with good credit!!! How can I get around this? *sigh*

Re: Is it true that the rate for an investment property is more than a primary residence?

Even though only your husband is on the mortgage, are you on the deed?

I've had customers who were waiting to sell their home (for a child to finish school or something), but wanted to buy another place and rent out the second place for a year before they move into it. In that case, the second property was going to be characterized as an investment property, even though it was going to ultimately be a primary residence after a year. But if you intend to move in right away and live in the home you are buying as a primary residence, I am not sure why they would treat it as an investment (but I am not an expert on the ins and outs of mortgages, and I know the rules are constantly evolving).

I don't know what lender you are using, but if you want to shop around, I can give you some other recommendations, and you can see what they offer you. Feel free to FM me if you want to explore other options!

Re: Is it true that the rate for an investment property is more than a primary residence?

Thats ridiculous, find another lender.

You should tell your lender that the house you are buying will now be your primary residence and you are selling and/or moving out of the other. There should be no issues.

I once owned a home that I was going to sell. I bought a new home while owning the old home. Claimed the new place as my primary residence. Kept both houses for a few months. Had no issues.

Re: Is it true that the rate for an investment property is more than a primary residence?

The rate for an investment property is higher than the rate for a primary residence. The loan application process is also a bit different.

Like the others have said I would go to other banks and see what they tell you.

Re: Is it true that the rate for an investment property is more than a primary residence?

I know I need to look out for myself, but would it be terrible to leave a broker who Ive been working with for 2 months if I find something better? Closing date is on or about 11/15. I have a friend who used to be a mortgage broker and another who is but only works with businesses and they both are now telling me it sounds like the broker is trying to get more money out of me and I should go check out other banks.

Re: Is it true that the rate for an investment property is more than a primary residence?

yes I would 100% go speak to other banks

this is a short sale correct? once the short sale is approved you will have 30 days to close-

the contract date is going to have to be extended regardless

see how fast his tune changes when you say you spoke to another bank

Re: Is it true that the rate for an investment property is more than a primary residence?

I did not realize that you are separating from your husband. I feel like I have known you since LIW and I am so very sorry.

I think it is fine to shop for another broker. It's business and you need to get the best result possible.

Although separation agreements are probably a lot less comon with no-fault divorce, maybe you can see if you can get an agreement in place & use that to show a bank.

Message edited 10/16/2011 1:17:25 AM.