Submitted by Hartacus t3_101d42z in personalfinance
I wasn’t sure if they force you to refi your first property into an investment loan since it is no longer your primary residence? Can someone explain if this is possible and if not, what would be the best option? Any loopholes like living in it for a couple weeks a year?
Edit 1: per the Reddit professionals, it seems the simple answer is you have to live in a house as a primary residence for 1 year(contracts vary), then you can keep the original loan/rate regardless if you move primary residences. However some banks don’t care as long as they get paid and won’t check into it unless there’s an issue.
Edit 2: I understand there is a housing crisis caused mainly by large investment firms buying up 10s and 100s of properties (sometimes out of state) and renting them out at inflated prices. I have a growing middle class family and our current house is too small. We just want to upsize and do what is financially most optimal for our family, we don’t plan on becoming slum lords or a massive contributor to the issue by buying multiple properties
Edit 3: more info - I worded the title poorly, I want to take out a separate mortgage for the 2nd house, not a 2nd mortgage on the first house - State is Nebraska - I’ve lived in the first property for 7 years