I want to buy my grandma's home in a different city so that when I or my family goes to visit her, we have a place to stay and to eventually move to full time. Can I purchase it as a primary residence? Would I be considered a first time home buyer?
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Hello Carol,
I'm happy to see you come buy my site and ask your question. I will try to answer this for you to the best of my ability.
You say that you live in a different city than where Grandma's house is at.
When you apply for a mortgage, the lender will be very interested in knowing if this will become your primary residence.
So, if you live over 100 miles away from the home you want to buy, this raises a red flag with the lender because they know you will not be driving back and forth to work with a distance of 100+ miles. This varies from lender to lender.
You have a tough situation here. Most likely you would have to lie (not recommended since this is loan fraud) and tell them you are moving. This will create a whole different mess. They want letters from your new employer and even may even want to see a few pay stubs before they process the loan.
So to answer your question, you can buy the home but the lender will look at it as a vacation home most likely. Then it will require a minimum 20% down payment, higher interest rates etc.
I'm sure this is not what you wanted to hear, but I only tell it like it is here in my blog and on my website. I aim to help people get to the truth no matter if it makes you feel good or bad.
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