August 26, 2025 • 15 mins
The mortgage market saw significant improvement last week after Fed Chair Powell signaled a likely rate cut at the September 17th meeting, with rates dropping to around 6.25%.
Listen NOW for all the details you need to know!
This week we explore property occupancy rules in light of Fed Governor Lisa Cook's mortgage fraud investigation, explaining the critical differences between primary residences, second homes, and investment properties.
Some things to consider -
• Primary residences require occupancy within 60 days and offer lowest rates and down payments
• Second homes need 10% down, must be 100+ miles from primary or have distinct vacation characteristics
• Investment properties require 15% down minimum and carry higher interest rates
• Multiple second homes are possible, as are properties that combine personal use with rental income
Contact Nikki on social media @mortgagesfromMN2AZ or call 952-484-1584 for mortgage questions.
Realtors! Contact Angie at angiegerber@gmail.com
Now's The Time - no matter where you are, where you have been, or your current results - By becoming more aware and following a process, you can have whatever it is you truly desire!
Schedule a free discovery call with me.
I would love to learn more about your goals, dreams, and desires!!
https://calendly.com/angiegerber/zoom-call-15-minutes
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AGCoaching@agcoaching684
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Angie Gerber
angiegerber@gmail.com
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Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Welcome to the Monday Market Update.
It is August 25th and I'mexcited to see what this week
will bring.
Speaker 2 (00:10):
Yes, absolutely.
So we had a really, really,really good week last week from
a mortgage standpoint.
After the Jackson Hole meetingwith the Fed last week, powell
basically went on record andvirtually guaranteed a rate drop
from the September 17th meeting.
So he's pointing to things likethe job market, inflation, you
know, core PCE, things of thatnature, which he recognized have
(00:32):
increased slightly.
But now because of thoseincreases it's definitely time
to start pushing down on thoseinterest rates to help stimulate
housing within the economy.
The mortgage interest ratesreally love that.
On Friday, as you can see, thisbig green line showed all the
improvement we got on Fridayfrom a mortgage interest rate
standpoint, so that thosechanges affect the bond market
(00:53):
and therefore affects mortgageinterest rates, would have
reached around six and a quarteron Friday.
Today we're, you know, kind ofprobably six and three A's,
maybe six and a half today, butreally the market really loving
the idea that we're going to seesome Fed rate cuts.
The September 17th rate cut is93% guaranteed, so pretty high
numbers as we start to get overthe next couple of weeks,
(01:16):
revisions to jobs reports.
So what happens is when we getthe initial jobs report there's
always a number associated jobcreation number, so for example,
$250,000 or $230,000 orwhatever that number is.
And then the very next monththey go and they revise the
prior month's jobs report.
Why that's important is becausemost of the time they correct
for actual number of jobs thatwere created that month.
(01:38):
So here's the estimate and thenhere's the correction.
This next month, in September,it's going to be very important
because we get that number onSeptember 5th, there's an
opinion that comes out onSeptember 9th and then, as long
as those numbers are lower, it'sgoing to virtually guarantee
that drop in the interest ratefrom a Fed standpoint.
So all good things in themarket there.
(01:59):
Also, I wanted to talk about theFed Governor, lisa Cook.
So she is a voting member ofthe Fed.
She is currently underinvestigation for mortgage fraud
.
If and President Trump hascalled for her resignation, or
he is telling her that if shedoes not resign, that he will
fire her because of the mortgagefraud.
And what this whole mortgagefraud is based on is important
(02:21):
for the topic that I want totalk to today.
So Lisa Cook purchased a home inAtlanta Georgia a condo in
Atlanta Georgia as her primaryresidence.
She also purchased a home inAnn Arbor, michigan, and called
that home her primary residencewhen she purchased that home.
The whole basis is was it herprimary residence or was it not?
Primary residence indicatesthat you will be occupying that
(02:44):
property within 60 days ofclosing.
So the mortgage rules are assuch.
We have to determine, asmortgage loan originators, what
purpose that property is goingto be.
Is it going to be a primaryresidence, is it going to be a
second home or is it going to bean investment property?
Those things are importantbecause it has to do with
occupancy and it also has to dowith required down payments.
Because it has to do withoccupancy and it also has to do
(03:05):
with required down payments,interest rates and how the loan
is being priced overall ingeneral and how it's being sold.
So, prior to and whether or notthis happens with Lisa Cook or
whatever, the stance is that,especially if you are someone
who is in the financial industry, and especially if you are
(03:26):
someone who is going to be avoting member for the Fed, you
need to be diligent and properin how you run your finances
from a personal side, and it isup to you to be a representative
for the American public andread the documents that you're
signing.
So there's been some talk abouthow she was like I didn't
realize it was a primaryresidence loan, those things.
But her due diligence as avoting member of the Fed would
be to read those documents, andso that's kind of really what
(03:48):
the rhetoric is and what they'resaying.
So if we flip that over and wetalk to you guys as agents and
you're starting to look withfirst-time homebuyers, well we
know that with a first-timehomebuyer, most likely that
occupancy is going to be aprimary residence.
They need a place to live.
But as you start looking withpeople who already own homes,
people who are maybe moving todifferent states, people who
show interest in properties indifferent states, people who
(04:10):
have a history of investmentproperty, income, things of that
nature, we need to be morediligent about what the use of
that property is going to be.
This is important.
Prior to 2008, prior to thecrash, everything they just
called a primary residence andthere wasn't a lot of question
as to it because there wasn't alot of regulation surrounding it
.
Occupancy is probably thenumber one thing that I get
(04:33):
questioned about continuously ona loan because of Airbnbs,
because of people wanting to buyinvestment properties down the
block from where they're livingand want to call it a primary
residence, things of that nature, and so I have to be very
particular in the questions thatI ask and the explanations that
go into that file.
As to the occupancy On a secondhome, for example, there's
(04:56):
regulations there.
So if I want to call a propertya second home, it needs to be
at least a hundred miles fromtheir primary residence location
.
If they are not selling thatprimary residence, it needs to
be able to be second home innature.
So, in other words, a differentstate makes that qualified From
.
Let's say, you live in, you know, minneapolis, minnesota, and
(05:17):
you want to purchase a cabin upnorth.
If that's not 100 miles away,that can be okay, but it's a
cabin on a lake, so therefore wecan justify that it is going to
be a second home for you.
So those are some of therequirements from a second home
standpoint.
From an investment propertystandpoint, are you going to be
receiving rental income fromthat property?
(05:38):
If yes, it's an investmentproperty.
If no, we can look at it indifferent ways.
Are you going to be occupyingthe property?
Is it going to be used as asecond home?
And there is a way that you cancombine second home usage or
second home occupancy and stillreceive rental income for that
(05:58):
property and it not be called aninvestment property.
The catalyst to that is how muchtime are you going to be
personally spending at thissecond home?
So if you can reasonably saythat you will be spending at
least two weeks a year at thishome, occupying it as your
second home, what happens to theproperty the rest of the year
is okay if that makes sense.
(06:19):
So in other words, if you say,okay, well, I'm going to
purchase this property inFlorida, I'm going to try to get
some income off this property,but it's actually going to be my
personal use and I'll rent itout to family and friends if
they want to stay there orwhatever that is.
But I'm not going to try tocreate a business out of getting
investment property income fromthis property and I'm going to
be using it for my own personaluse.
(06:41):
A lot of the time that canstill be considered a second
home.
Where we get into trouble is ifyou say, okay, I'm going to buy
this property in Florida, yeah,I'll occupy it for the two weeks
just so that I can qualify fora second home and then rent it
out the rest of the time.
That is actually more of aninvestment property situation.
So you can see how me, comingin and talking to people about
occupancy, I have to beextremely clear on what the
(07:02):
options are and extremely clearon what their intention with
that property is.
If it's found that theypurchased a home as a primary
residence and then they showinvestment property income on
their taxes and that file getsaudited, what's most likely
going to happen is that mortgagecompany is going to call that
loan due and payable becausethey have violated their promise
(07:25):
to occupy as a primary resident.
So it can be a pretty seriousthing if we don't establish
occupancy.
So, as you're talking to people, as you're keeping in mind, you
know, buyers that are going outto the market, make sure we're
talking to them about what doyou want this property for?
Like, why are you doing this,what's your intention?
And really have the storybehind it so that we can work
together to know what thatoccupancy really is.
Speaker 1 (07:47):
Yeah, that makes sense.
With so much going on right nowand a lot of people getting
called to the table, it soundslike, on this, it's a timely
topic, for sure, and just a goodthing.
And again, I would love yourtake so as an agent, as I'm
talking to an investor how muchdo we need to know?
Or is it just the laws arealways changing or things always
(08:09):
changing, so it's just best toget them right over to you to
answer these questions?
Speaker 2 (08:14):
Yeah, it's best to get them over to me to answer
the questions.
I mean, it can change a lot,you know as far as what, and it
can actually change fromunderwriter to underwriter.
Some underwriters are moreconservative and say, yeah, I
understand that you think thatthis is a second home, but I
think we really need to look atthis as an investment property
for X reason Maybe.
Like, for example, maybe theyhave a primary residence in
Minnesota, they already have asecond home in Arizona and
(08:35):
they're wanting to purchase anadditional second home in
Florida and you're kind of like,are you doing that and you can
have multiple second homes?
Fyi, just like you can havemultiple investment properties.
But maybe they claim somerental income on that second
home in Arizona last year andyou're like they're most likely
going to claim rental income.
So a lot of that is just adiscussion to be had with me and
a discussion to be had with theunderwriter in making sure that
(08:56):
we are on top of what thatoccupancy is.
The reason it's important.
Primary residence loans requirelower down payments and have
lower interest rates.
Second homes require at least10% down and have higher
interest rates.
Investment properties have tobe at least 15% down and have
higher interest rates.
So it's really that step up orthat minimum down payment
requirement that needs to be met.
Speaker 1 (09:18):
Yeah, and you said you know Lisa Cook doing her due
diligence in reading herpaperwork.
Doing her due diligence inreading her paperwork, would her
lender or her closer, or thepeople that helped her get to
the point of the closing andsigning these papers?
Do they have any parts in thisprocess as far as just, I guess,
(09:39):
responsibility?
Speaker 2 (09:40):
Yes, in the extreme, the lender's credibility or the
lender's licensing can bebrought into question about
whether or not they knew thatthis was not going to be a
primary residence andpurposefully put it through
underwriting with that intentionof deceiving the underwriter
back, or a mark against theirability to have underwriting
(10:04):
opportunities.
Whether they knew, whether theyquestioned it, whether they you
know how they justified it, thecompany, the actual bank or the
company that lent that money,can be called into question for
their branch licensing, for youknow fines that might have
become associated with thiswhole situation and doing loans
that are, you know, questionedthe occupancy.
(10:25):
Now that's the.
That's the.
That's what could happen On asmaller scale.
This comes into question mostof the time when there's a
foreclosure situation.
So, for example, somebodyturning a primary residence into
an investment property is notrequired by law or by any means
to redo their mortgage as aninvestment property loan.
(10:47):
They are not required to do so.
You are absolutely allowed tochange occupancy on any property
that you want after you haveclosed on the mortgage loan, as
long as you have fulfilled theoriginal obligation of occupancy
.
So, in other words, for aprimary residence, it is your
job to occupy that property, inother words, live there 80% of
the time within 60 days ofclosing.
(11:09):
The reason that they say thatis because some people want to
paint before they move in, theywant to do new carpets before
they move in, they want to dosome updates, et cetera.
So you have 60 days to do thatand get yourself into that
property or say that yourreasonable expectation is that
it'll be done in 60 days or thatyou'll be in it in 60 days.
After that 60-day mark, it isreasonable for us to expect that
(11:30):
you occupy the property for atleast six more months as your
primary residence before youchange occupancy of that
property and not have to reallyput into question what that
occupancy is or have it affectthe loan.
So in other words, let's justsay you bought a property in
January, you move in by March,you occupy all the way to what
(11:50):
would that be?
September, and then you put iton the market to rent it out
November, december there'snothing much that we can say
about that and you want to buyan additional primary residence?
That can happen.
I as a lender always recommendthat you occupy it for at least
a year.
But I can't enforce that ifthat makes sense.
So it's a whole kind of like asix payment rule.
(12:11):
As long as you are occupyingthat property and you've made
your six payments, you are freeto do what you want with that
property.
But again, I always suggest ayear, just to make sure that
there is no doubt.
So a lot of my clients who areinvestors they will move into
primary residences and occupy itfor a year before they move
into their next primaryresidence.
So I have a couple of clientsin particular who have done this
(12:33):
30 plus times and just reallyover the years obviously have
built up primary residences orthey'll, you know, buy a primary
and then they'll buy the onenext door as an investment
property or whatever that is,knowing that they're going to
occupy one for a year and thenrent it out.
Or I have a lot of clients whowill go and buy duplexes or
triplexes, live in one of theunits for a year before renting
(12:54):
that out and moving on to theirnext property.
So you know, we can workthrough those details on how
that works.
And if you really want to buildup those investment properties,
there is ways that you can doit using primary residence loans
.
Speaker 1 (13:06):
So, like I said, call Nikki.
A lot of information.
Speaker 2 (13:09):
Yes, A lot of information about occupancy.
For sure, nikki, a lot ofinformation, yes, a lot of
information about occupancy.
Speaker 1 (13:12):
For sure, lots of information, lots of different
things, lots of different ways,lots of different again lanes.
So as an agent I know enough tobe dangerous, but I primarily
stay in my lane and that's foryou, because you have, you have
a lot of lanes in your lane.
So very much, so Good, awesome,well, no, that's all amazing
(13:34):
information and very timely, asalways.
So I really appreciate it and Iappreciate you showing up week
after week so real quick for thepeople listening on YouTube or
on the podcast.
Where can they find you?
Speaker 2 (13:46):
They can find me on Facebook, instagram and TikTok.
My handle is at mortgages fromMN2AZ.
On Facebook, instagram andTikTok, my handle is at
mortgages from MN2AZ.
Speaker 1 (13:56):
They can reach me on my cell phone, 952-484-1584, or
they can email me at Nikki atKevnickMortgagecom Perfect, and
I'm Angie Gerber at gmailcom, sothat's pretty easy.
So reach out to us if you haveany questions at all as an agent
helping your clients in any way, we're here and happy to help
Awesome.
Speaker 2 (14:14):
We'll see you guys next week.
Speaker 1 (14:16):
Absolutely have a good one.
Speaker 2 (14:18):
Yeah, bye-bye.
Welcome to the Monday Market Update.
It is August 25th and I'mexcited to see what this week
will bring.
Speaker 2 (00:10):
Yes, absolutely.
So we had a really, really,really good week last week from
a mortgage standpoint.
After the Jackson Hole meetingwith the Fed last week, powell
basically went on record andvirtually guaranteed a rate drop
from the September 17th meeting.
So he's pointing to things likethe job market, inflation, you
know, core PCE, things of thatnature, which he recognized have
(00:32):
increased slightly.
But now because of thoseincreases it's definitely time
to start pushing down on thoseinterest rates to help stimulate
housing within the economy.
The mortgage interest ratesreally love that.
On Friday, as you can see, thisbig green line showed all the
improvement we got on Fridayfrom a mortgage interest rate
standpoint, so that thosechanges affect the bond market
(00:53):
and therefore affects mortgageinterest rates, would have
reached around six and a quarteron Friday.
Today we're, you know, kind ofprobably six and three A's,
maybe six and a half today, butreally the market really loving
the idea that we're going to seesome Fed rate cuts.
The September 17th rate cut is93% guaranteed, so pretty high
numbers as we start to get overthe next couple of weeks,
(01:16):
revisions to jobs reports.
So what happens is when we getthe initial jobs report there's
always a number associated jobcreation number, so for example,
$250,000 or $230,000 orwhatever that number is.
And then the very next monththey go and they revise the
prior month's jobs report.
Why that's important is becausemost of the time they correct
for actual number of jobs thatwere created that month.
(01:38):
So here's the estimate and thenhere's the correction.
This next month, in September,it's going to be very important
because we get that number onSeptember 5th, there's an
opinion that comes out onSeptember 9th and then, as long
as those numbers are lower, it'sgoing to virtually guarantee
that drop in the interest ratefrom a Fed standpoint.
So all good things in themarket there.
(01:59):
Also, I wanted to talk about theFed Governor, lisa Cook.
So she is a voting member ofthe Fed.
She is currently underinvestigation for mortgage fraud
.
If and President Trump hascalled for her resignation, or
he is telling her that if shedoes not resign, that he will
fire her because of the mortgagefraud.
And what this whole mortgagefraud is based on is important
(02:21):
for the topic that I want totalk to today.
So Lisa Cook purchased a home inAtlanta Georgia a condo in
Atlanta Georgia as her primaryresidence.
She also purchased a home inAnn Arbor, michigan, and called
that home her primary residencewhen she purchased that home.
The whole basis is was it herprimary residence or was it not?
Primary residence indicatesthat you will be occupying that
(02:44):
property within 60 days ofclosing.
So the mortgage rules are assuch.
We have to determine, asmortgage loan originators, what
purpose that property is goingto be.
Is it going to be a primaryresidence, is it going to be a
second home or is it going to bean investment property?
Those things are importantbecause it has to do with
occupancy and it also has to dowith required down payments.
Because it has to do withoccupancy and it also has to do
(03:05):
with required down payments,interest rates and how the loan
is being priced overall ingeneral and how it's being sold.
So, prior to and whether or notthis happens with Lisa Cook or
whatever, the stance is that,especially if you are someone
who is in the financial industry, and especially if you are
(03:26):
someone who is going to be avoting member for the Fed, you
need to be diligent and properin how you run your finances
from a personal side, and it isup to you to be a representative
for the American public andread the documents that you're
signing.
So there's been some talk abouthow she was like I didn't
realize it was a primaryresidence loan, those things.
But her due diligence as avoting member of the Fed would
be to read those documents, andso that's kind of really what
(03:48):
the rhetoric is and what they'resaying.
So if we flip that over and wetalk to you guys as agents and
you're starting to look withfirst-time homebuyers, well we
know that with a first-timehomebuyer, most likely that
occupancy is going to be aprimary residence.
They need a place to live.
But as you start looking withpeople who already own homes,
people who are maybe moving todifferent states, people who
show interest in properties indifferent states, people who
(04:10):
have a history of investmentproperty, income, things of that
nature, we need to be morediligent about what the use of
that property is going to be.
This is important.
Prior to 2008, prior to thecrash, everything they just
called a primary residence andthere wasn't a lot of question
as to it because there wasn't alot of regulation surrounding it
.
Occupancy is probably thenumber one thing that I get
(04:33):
questioned about continuously ona loan because of Airbnbs,
because of people wanting to buyinvestment properties down the
block from where they're livingand want to call it a primary
residence, things of that nature, and so I have to be very
particular in the questions thatI ask and the explanations that
go into that file.
As to the occupancy On a secondhome, for example, there's
(04:56):
regulations there.
So if I want to call a propertya second home, it needs to be
at least a hundred miles fromtheir primary residence location
.
If they are not selling thatprimary residence, it needs to
be able to be second home innature.
So, in other words, a differentstate makes that qualified From
.
Let's say, you live in, you know, minneapolis, minnesota, and
(05:17):
you want to purchase a cabin upnorth.
If that's not 100 miles away,that can be okay, but it's a
cabin on a lake, so therefore wecan justify that it is going to
be a second home for you.
So those are some of therequirements from a second home
standpoint.
From an investment propertystandpoint, are you going to be
receiving rental income fromthat property?
(05:38):
If yes, it's an investmentproperty.
If no, we can look at it indifferent ways.
Are you going to be occupyingthe property?
Is it going to be used as asecond home?
And there is a way that you cancombine second home usage or
second home occupancy and stillreceive rental income for that
(05:58):
property and it not be called aninvestment property.
The catalyst to that is how muchtime are you going to be
personally spending at thissecond home?
So if you can reasonably saythat you will be spending at
least two weeks a year at thishome, occupying it as your
second home, what happens to theproperty the rest of the year
is okay if that makes sense.
(06:19):
So in other words, if you say,okay, well, I'm going to
purchase this property inFlorida, I'm going to try to get
some income off this property,but it's actually going to be my
personal use and I'll rent itout to family and friends if
they want to stay there orwhatever that is.
But I'm not going to try tocreate a business out of getting
investment property income fromthis property and I'm going to
be using it for my own personaluse.
(06:41):
A lot of the time that canstill be considered a second
home.
Where we get into trouble is ifyou say, okay, I'm going to buy
this property in Florida, yeah,I'll occupy it for the two weeks
just so that I can qualify fora second home and then rent it
out the rest of the time.
That is actually more of aninvestment property situation.
So you can see how me, comingin and talking to people about
occupancy, I have to beextremely clear on what the
(07:02):
options are and extremely clearon what their intention with
that property is.
If it's found that theypurchased a home as a primary
residence and then they showinvestment property income on
their taxes and that file getsaudited, what's most likely
going to happen is that mortgagecompany is going to call that
loan due and payable becausethey have violated their promise
(07:25):
to occupy as a primary resident.
So it can be a pretty seriousthing if we don't establish
occupancy.
So, as you're talking to people, as you're keeping in mind, you
know, buyers that are going outto the market, make sure we're
talking to them about what doyou want this property for?
Like, why are you doing this,what's your intention?
And really have the storybehind it so that we can work
together to know what thatoccupancy really is.
Speaker 1 (07:47):
Yeah, that makes sense.
With so much going on right nowand a lot of people getting
called to the table, it soundslike, on this, it's a timely
topic, for sure, and just a goodthing.
And again, I would love yourtake so as an agent, as I'm
talking to an investor how muchdo we need to know?
Or is it just the laws arealways changing or things always
(08:09):
changing, so it's just best toget them right over to you to
answer these questions?
Speaker 2 (08:14):
Yeah, it's best to get them over to me to answer
the questions.
I mean, it can change a lot,you know as far as what, and it
can actually change fromunderwriter to underwriter.
Some underwriters are moreconservative and say, yeah, I
understand that you think thatthis is a second home, but I
think we really need to look atthis as an investment property
for X reason Maybe.
Like, for example, maybe theyhave a primary residence in
Minnesota, they already have asecond home in Arizona and
(08:35):
they're wanting to purchase anadditional second home in
Florida and you're kind of like,are you doing that and you can
have multiple second homes?
Fyi, just like you can havemultiple investment properties.
But maybe they claim somerental income on that second
home in Arizona last year andyou're like they're most likely
going to claim rental income.
So a lot of that is just adiscussion to be had with me and
a discussion to be had with theunderwriter in making sure that
(08:56):
we are on top of what thatoccupancy is.
The reason it's important.
Primary residence loans requirelower down payments and have
lower interest rates.
Second homes require at least10% down and have higher
interest rates.
Investment properties have tobe at least 15% down and have
higher interest rates.
So it's really that step up orthat minimum down payment
requirement that needs to be met.
Speaker 1 (09:18):
Yeah, and you said you know Lisa Cook doing her due
diligence in reading herpaperwork.
Doing her due diligence inreading her paperwork, would her
lender or her closer, or thepeople that helped her get to
the point of the closing andsigning these papers?
Do they have any parts in thisprocess as far as just, I guess,
(09:39):
responsibility?
Speaker 2 (09:40):
Yes, in the extreme, the lender's credibility or the
lender's licensing can bebrought into question about
whether or not they knew thatthis was not going to be a
primary residence andpurposefully put it through
underwriting with that intentionof deceiving the underwriter
back, or a mark against theirability to have underwriting
(10:04):
opportunities.
Whether they knew, whether theyquestioned it, whether they you
know how they justified it, thecompany, the actual bank or the
company that lent that money,can be called into question for
their branch licensing, for youknow fines that might have
become associated with thiswhole situation and doing loans
that are, you know, questionedthe occupancy.
(10:25):
Now that's the.
That's the.
That's what could happen On asmaller scale.
This comes into question mostof the time when there's a
foreclosure situation.
So, for example, somebodyturning a primary residence into
an investment property is notrequired by law or by any means
to redo their mortgage as aninvestment property loan.
(10:47):
They are not required to do so.
You are absolutely allowed tochange occupancy on any property
that you want after you haveclosed on the mortgage loan, as
long as you have fulfilled theoriginal obligation of occupancy
.
So, in other words, for aprimary residence, it is your
job to occupy that property, inother words, live there 80% of
the time within 60 days ofclosing.
(11:09):
The reason that they say thatis because some people want to
paint before they move in, theywant to do new carpets before
they move in, they want to dosome updates, et cetera.
So you have 60 days to do thatand get yourself into that
property or say that yourreasonable expectation is that
it'll be done in 60 days or thatyou'll be in it in 60 days.
After that 60-day mark, it isreasonable for us to expect that
(11:30):
you occupy the property for atleast six more months as your
primary residence before youchange occupancy of that
property and not have to reallyput into question what that
occupancy is or have it affectthe loan.
So in other words, let's justsay you bought a property in
January, you move in by March,you occupy all the way to what
(11:50):
would that be?
September, and then you put iton the market to rent it out
November, december there'snothing much that we can say
about that and you want to buyan additional primary residence?
That can happen.
I as a lender always recommendthat you occupy it for at least
a year.
But I can't enforce that ifthat makes sense.
So it's a whole kind of like asix payment rule.
(12:11):
As long as you are occupyingthat property and you've made
your six payments, you are freeto do what you want with that
property.
But again, I always suggest ayear, just to make sure that
there is no doubt.
So a lot of my clients who areinvestors they will move into
primary residences and occupy itfor a year before they move
into their next primaryresidence.
So I have a couple of clientsin particular who have done this
(12:33):
30 plus times and just reallyover the years obviously have
built up primary residences orthey'll, you know, buy a primary
and then they'll buy the onenext door as an investment
property or whatever that is,knowing that they're going to
occupy one for a year and thenrent it out.
Or I have a lot of clients whowill go and buy duplexes or
triplexes, live in one of theunits for a year before renting
(12:54):
that out and moving on to theirnext property.
So you know, we can workthrough those details on how
that works.
And if you really want to buildup those investment properties,
there is ways that you can doit using primary residence loans
.
Speaker 1 (13:06):
So, like I said, call Nikki.
A lot of information.
Speaker 2 (13:09):
Yes, A lot of information about occupancy.
For sure, nikki, a lot ofinformation, yes, a lot of
information about occupancy.
Speaker 1 (13:12):
For sure, lots of information, lots of different
things, lots of different ways,lots of different again lanes.
So as an agent I know enough tobe dangerous, but I primarily
stay in my lane and that's foryou, because you have, you have
a lot of lanes in your lane.
So very much, so Good, awesome,well, no, that's all amazing
(13:34):
information and very timely, asalways.
So I really appreciate it and Iappreciate you showing up week
after week so real quick for thepeople listening on YouTube or
on the podcast.
Where can they find you?
Speaker 2 (13:46):
They can find me on Facebook, instagram and TikTok.
My handle is at mortgages fromMN2AZ.
On Facebook, instagram andTikTok, my handle is at
mortgages from MN2AZ.
Speaker 1 (13:56):
They can reach me on my cell phone, 952-484-1584, or
they can email me at Nikki atKevnickMortgagecom Perfect, and
I'm Angie Gerber at gmailcom, sothat's pretty easy.
So reach out to us if you haveany questions at all as an agent
helping your clients in any way, we're here and happy to help
Awesome.
Speaker 2 (14:14):
We'll see you guys next week.
Speaker 1 (14:16):
Absolutely have a good one.
Speaker 2 (14:18):
Yeah, bye-bye.
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